MGM101H5 Lecture Notes - Lecture 10: Initial Public Offering, Convertible Bond, Stock Certificate
25
MGM101H5 Full Course Notes
Verified Note
25 documents
Document Summary
We need to manage money, control spending, create profit/ surplus. We don"t want to lose too much money (this is the role of financial manager) Finance: the business function that is responsible for cash acquisition and disbursements. Financial management: the job of managing a firm"s resources so it can meet its goals and objectives. Financial manager: managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm. Common ways to fail financially: (1) undercapitalization (lacking funds to start and run the business) (2) poor control over cash flow (3) inadequate expense control. 2 tasks: manage transactions from accounting standpoint, manage flow of cash (cash cycle - spend money first so we can generate products and services - then we sell and get payment) Goal is to shorten cycle - delay paying, and get income. It"s vital that financial managers in any business stay abreast of changes and opportunities in finance and adjust to them.
