BUS-101 Lecture Notes - Lecture 10: Corporate Finance, Commercial Paper, Secured Loan
Document Summary
Financial mangers understand that positive pro ts do not guarantee a rms ability to pay their bills and that the timing of cash in ows and out ows can sometimes leave a. Financial planning process: forecast, budget, control. Ceteris paribus, individuals expect that relatively safe or certain investment opportunities are associated with lower rates of return. When nancial managers use the term working capital, they are referring to funds. Not used of working capital for valley lawnmowers parts: nancing construction of a new warehouse and sales center. Working capital: used by the form to meet their day to day operational cash ow needs. Factoring: rms sell their accountants receivable to a specialized lender. Commercial paper: short term unsecured loans usually only available to large and well established rms. Short term lines of credit: issued by commercial. Commercial nance loans: short term secured loans issued by specialty leaders for. Rms that cannot receive short term nancing from traditional bene ts.
