MGM101H5 Lecture Notes - Lecture 12: Marketing Effectiveness, Financial Plan, Cash Flow

193 views2 pages
3 Dec 2018
School
Department
Course
MGM101H5
PROFESSOR DAVE SWANSTON
TOPIC- FINANCIAL MANAGEMENT
Finance is the function in a business that acquired funds for the firms and Manages them within
the firm
Finance activities include preparing budgets , cash flow statements analysis and planning for
expenditure of funds on assets such as plant , machinery and equipment
Financial management is the job of managing a firms resources to meet its goals and objectives
Without a carefully calculated financial plan and sound financial management a firm has little
chance for survival regardless of its products or marketing effectiveness
A financial manager is like doctor who interprets the report and makes recommendations that
will improve patients health
Financial managers examine the financial data prepared by accountants and recommend
strategies for improving financial performance of firm
They make sound sound financial decision only if they understand accounting information
Accounting and finance go together
What financial managers do :
Auditing
Planning
Budgeting
Obtaining funds
Controlling funds
Collecting funds
Advising top management on financial matters
Managing taxes
Reasons a firms financially fail:
Undercapitalization
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