ACCA Applied Skills · Financial Management · Financial objectives and relationship with corporate strategy
Which of the following is a typical non-financial objective that a listed company might pursue alongside its financial objectives?
Improving employee welfare and corporate social responsibility is a non-financial objective. Targets for return on capital employed, dividend growth and earnings per share are all measured in financial terms, so they are financial objectives rather than non-financial ones.
- AAchieving a target return on capital employed
- BMaintaining a target dividend growth rate
- CImproving employee welfare and corporate social responsibilityCorrect
- DAchieving a minimum level of earnings per share
Explanation
Employee welfare and corporate social responsibility are non-financial objectives. ROCE, dividend growth and EPS targets are all expressed in financial terms, so they are financial objectives.
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