COMM 308 Chapter Notes - Chapter 1: Capital Asset Pricing Model, Limited Liability, Corporate Finance
7 Apr 2017
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Finance the study of how money is allocated among people. Financial contracts/financial securities come to existence whenever funds are transferred. Real assets tangible things composing personal & business assets. Financial assets claims of individuals or institutions on another. How to manage everyday financial activities (collecting from customers & paying suppliers) This is the process of managing the firm"s investment decisions: extend credit to customers, manage cash, manage temporary cash surplus, acquisition of or investment in other firms. Owners (shareholders) aren"t usually directly involved in making day-to-day business decisions; instead, the company employs managers to represent owners" interests. The financial management function is usually associated with a top officer of the firm, such as the vice- The cfo reports to the president (coo) who reports to the ceo the ceo has overall responsibility to the board. The cfo coordinates the activities of the treasurer and the controller. Controller this office handles cost and financial accounting, tax payments and management information systems.
