BUSN 101 Lecture Notes - Lecture 12: Chief Financial Officer, Corporate Finance, Cash Flow
30 Sep 2018
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Document Summary
Finance-- the function in a business that acquires funds for a firm and manages them within the firm. Financial management: the job of managing a firm"s resources to meet its goals and objectives. Financial plan = needed for a firm to survive involve. 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. Short term forecast- predicts revenues, costs and expenses for a period of one year or less. Cash flow forecast- predicts the cash inflows and outflows in future periods, usually months or quarters. Long term forecast- predicts revenues, costs, and expenses for a period longer than one year and sometimes as long as five or ten years. Budget--sets forth management"s expectations for revenues and allocates the use of specific resources throughout the term.
