Business entity part 2 - Essay Example

Business Entity Task Introduction Long term financial goals are the goals that a corporation sets to achieve monetary fulfilment through a process of acquiring financial resources (Krus, 2005). This study highlights some long term financial goals, which are cash increase, return increase, and revenue growth.1. Cash increaseCash increase is a long term goal necessary for the survival of a corporation. This long term goal results to an increase of corporation’s capital. For the target to be considerable and effectual, consequently the goal should be measurable and realistic (Krus, 2005).

A measurable goal means that, the corporation can evaluate its achievements. Realistic goal means that set objectives are within reach and can be achievable. Cash increase as a goal that can be achieved by starting a saving plan, thus identifying the financial capability of the corporation.2. Revenue GrowthRevenue growth is a financial goal necessary for a corporation’s growth (Krus, 2005). The long term goal means steady elevation of sales that lead to income increase. This can be achieved by setting aside crisis funds.

This ensures the corporation has a back up and encounters no lose in the income. This enhances a corporation’s income which results to revenue growth that is fundamental in the financial unit.3. Return increaseReturns increase is a long term financial goal that a corporation can set. Return increase means profit increase in a corporation. The returns increase objective should be specific, which implies that the corporation should put precise figures in an orderly manner. (Krus, 2005). The goal should be achievable without the corporation being under pressure to enable it fulfil the goal.

This goal can be achieved by creating a budget that will identify credits and debits. ConclusionA corporation must set financial targets for its survival for a successful future. It has to plan and budget wisely and with expertise hence, a stable financial future.ReferenceKrus, C. M. (2005). Corporate Secretarys Answer Book. New York: Aspen Publishers.