← Business Management syllabus

ScotlandBusiness Management

Management of Finance

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do organisations forecast their cash, and what can they do when they face a shortfall?

Cash budgeting: the purpose of a cash budget, interpreting receipts, payments, net cash flow and closing balance, identifying cash flow problems, and the solutions to a shortfall.
An SQA Higher Business Management answer on cash budgeting, covering the purpose of a cash budget, how to interpret receipts, payments, net cash flow and the closing balance, how to identify cash flow problems, and the solutions a firm can use to improve cash flow.
11 min answer →

How do organisations measure their profit and worth, and who uses these statements?

The purpose and content of the main financial statements (the income statement and the statement of financial position), the figures they show, and the users of financial information.
An SQA Higher Business Management answer on financial statements, covering the purpose and content of the income statement (profit and loss) and the statement of financial position (balance sheet), the key figures they show such as gross and net profit, and the users of financial information.
11 min answer →

How do organisations use ratios to measure profitability and liquidity, and what are the limits of doing so?

Ratio analysis: the main profitability ratios (gross profit percentage, profit for the year percentage) and liquidity ratios (current ratio, acid test), how to interpret them, and the limitations of ratio analysis.
An SQA Higher Business Management answer on ratio analysis, covering the main profitability ratios (gross profit percentage and profit for the year percentage) and liquidity ratios (current ratio and acid test), how to interpret them, and the limitations of relying on ratios.
12 min answer →

Where do large organisations get the money they need, and how do they choose between sources?

The sources of finance available to large organisations (share issue, bank loan, debenture, retained profit, government grant, leasing, trade credit) and the factors affecting the choice of source.
An SQA Higher Business Management answer on sources of finance for large organisations, covering share issues, bank loans, debentures, retained profit, government grants, leasing and trade credit, and the factors that affect the choice of source.
11 min answer →

How does technology help organisations manage their finances more efficiently?

The use of technology in managing finance, including spreadsheets, accounting software, online and electronic banking, and electronic payments, with the advantages and disadvantages.
An SQA Higher Business Management answer on the use of technology in managing finance, covering spreadsheets, accounting software, online and electronic banking, and electronic payments, and the advantages and disadvantages for the organisation.
10 min answer →