COMMERCE 1E03 Chapter 17: Chapter 17 - 1E03 Slides
3 May 2017
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Document Summary
Financial management is the job of managing a firm"s resources so that the firm can meets its goals and objectives. Financial managers examine the financial data prepared by accountants and make recommendations to top executives regarding strategies for improving the financial strength (also known as health) of the organization. As you can see, a key responsibility is to obtain money and then control the use of that money effectively. Put another way, financial managers are responsible for seeing that the company pays its bills. Evaluating creditworthiness: 4c"s: information is captured in your credit profile. Debt financing: funds raised through various forms of borrowing that must be repaid. Equity financing: funds raised from operations within the firm or through the sale of ownership of the firm. Short-term financing: borrowed funds that are needed for one year or less. Long-term financing: burrowed funds that are needed for a period of more than one year.
