MGM101H5 Chapter Notes - Chapter 11: Cash Cash, Cash Flow, Financial Plan

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Business nor countries can exist without money because they need capital to run the entity. Go bankrupt when entity is not making enough to pay back even just the interest. Must pay attention to finances, create profits, generate spending, etc. Financial management- the job of managing firm"s resources so it can meet its goals/objectives; firm has little change for survival without carefully calculated financial plan. Finance- the function in a business that acquires funds for the firm and manages those funds within the firm; preparing cash flow analysis, planning for expenditure of funds, etc. Financial managers- managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm. Make decisions only if they understand accounting information and accountants needs to know finance as well. Key responsibility is to obtain money and then control the use of that money effectively.