• 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

• Global financial management

– Exchange rates

– Interest rates

– Methods of international payment – payment in advance, letter of credit, clean payment, bill of exchange

– Hedging

– Derivatives

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.