RSM100Y1 Chapter Notes - Chapter 20: Promissory Note, Credit Risk, Commercial Paper
Document Summary
Rsm 100y chapter 20: financial decisions and risk management. Managers responsible for the planning and controlling of the acquisition and dispersal of the companies financial assets, with 4 duties: Obtaining funds to pay for those investments. Conducting the firm"s every day financial activities. Helping to manage the risks that the firm takes. Objectives of the financial manager is to increase a firm"s value. Managers must ensure that it always has enough funds to purchase the materials and human resources needed in production. Any cash that is not needed immediately should be invested. Process of checking actual performance against plans to ensure that the desired financial status occurs (adjustments made daily to financial environment) Firm"s strategies for reaching a future financial position, answering: Unpaid bills, taxes due, wages all known before hand. Customers who have bought on credit, must know their payment schedule. This prediction is a function of credit policy . Raw materials, work-in-process inventory (unfinished goods) and finished goods.
