BUSN 101 Lecture Notes - Lecture 8: Chief Financial Officer, Cash Flow, Financial Plan
30 Sep 2018
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Finance: acquires funds for the firm and manages them w/in the firm. Financial activities: preparing budgets, doing cash flow analysis, planning for the expenditure of funds. Financial management: the job of managing a firm"s resources to meet its goals and o. Financial plan = needed for a firm to survive financial managers: examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm. Chief financial officer (cfo): in charge of both the accounting and finance functions in large & medium-sized firms, 2nd highest paid person in org. Controlling funds: includes managing the firm"s cash, credit accounts (accounts receivable), and inventory. 3 common reasons a firm fails financially: undercapitalization (insufficient funds to start the business, poor control over cash flow, inadequate expense control. Financial managers: responsible for paying the company"s bills @ appropriate time, and for collecting overdue payments to make sure the company does not lose too much money to bad debts.
