RSM100Y1 Lecture Notes - Corporate Bond, Commercial Paper
Document Summary
Finance is the business function involving a firm"s day to day financial activities and decisions about a firm"s long-term investments and how to obtain those funds to pay for them. Corporate finance: how companies obtain and use funds. Investment: analysis of financial securities including how they are valued, process of raising the funds for companies (can be considered under corporate finance) The two pieces are linked and build on the existence and efficient functioning of capital markets. Responsibility of a financial manager: financial control, financial planning, cash flow management, financial control. Checking actual performance against strategic plans to ensure that desired goals are achieved. Making adjustments as required when plans change, or do not work as intended. Preparing budgets to ensure that sufficient cash is on hand to meet operational and debt service needs. Actual results that vary from the budget need explanation and adjustment: financial planning.
