FIN 305 Lecture Notes - Lecture 4: Income Statement, Cash Flow Statement

• School: Ryerson University
• Department: Finance
• Course: FIN 305
• Professor: Bradley Mc Master

Document Summary

Founders get the ball rolling, starting a business to pursue their mission. They organize resources and financing to get operations started. Lenders and investors are big capital providers that can provide a significant amount of financing to the business entity so that it can purchase the resources it needs, hire management, develop technology and scale up operations. Lenders prefer safety to risk opting to make only a small amount of interest as a return on their invested capital. Investors accept higher amount of risk as they look to multiply their investment by 2x . Management are recruited to get the job done, operate the business day to day, month to month, planning organizing directing monitoring and controlling operations to help the founder achiever their mission. Growth - investors care about this cuz it"s how they get their money. Profitability investors care about this cuz it"s how they get their money.