HTA 602 Lecture Notes - Lecture 1: Corporate Finance, Cost Accounting, Chief Operating Officer

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTA 602
• Professor: Bernard Mc Evoy

Document Summary

The financial manager: owners (shareholders) in large corporation not directly involved in making day-to-day business decisions -> employ manager w/ in charge of 3 question things that raised stakes in financial management decisions financial management function. Capital structure/ financial structure specific mixture of short-term debt, long-term debt & equity the firm uses to finance its operations: how firm should obtain & manage long-term financing it needs to support long-term investment. Working capital management: how do we manage the day-to-day finances of the firm, working capital= short-term assets- short term liabilities (planning & managing firm"s current assets & liabilities) Sole proprietorship (owned by 1 person: advantages easiest to start least regulated form of org, disadvantages. Unlimited liability for business debts limited to life of owner. Partnership single owner keeps all the profits taxes once as personal income equity capital limited to owner"s personal wealth.