MGTA02H3 Lecture Notes - Lecture 10: External Auditor, Internal Audit, Financial Statement
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MGTA02H3 Full Course Notes
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Chapter 10: managing capital: the function of finance. Sec requires publicly traded companies to issue audited financial statements. Financial management - planning, organising, leading and controlling the finding and using of capital: without capital a business can"t buy/rent office space, can"t purchase officer equipment, machinery and supplies, can"t pay its employees. Chief financial officer (cfo) - senior manager responsible for overseeing the financial management of the entire organisation. Budgeting, investment appraisal, capital raising, investor relations, financial. A business must spend money before it can make money. Must hire workers, rent offices, purchase office equipment, and then begin production. Can take time before a business can break-even. Until then, must rely on the money from owner or borrowed money. Financial ratio classification: profitability, efficiency, liquidity, financial leverage. The following ratios may be used to evaluate the profitability of the business: return on equity, return on capital employed, operating profit margin, gross profit margin.
