Topic 3 | Finance
Sub topic 4: Financial management strategies
Lesson 1 | Cash flow, working capital and profitability management
-
cash flow management
– cash flow statements
– distribution of payments, discounts for early payment, factoring -
working capital management
– control of current assets – cash, receivables, inventories
– control of current liabilities – payables, loans, overdrafts
– strategies – leasing, sale and lease back -
profitability management
– cost controls – fixed and variable, cost centres, expense minimisation
– revenue controls – marketing objectives
Lesson 2 | Global financial management
-
global financial management
– exchange rates
– interest rates
– methods of international payment – payment in advance, letter of credit, clean payment, bill of exchange
– hedging
– derivatives
