RSM100Y1 Chapter Notes - Chapter 20: Unsecured Debt, Revolving Credit, Trade Credit
Document Summary
We have seen production managers are responsible for planning and controlling the output of goods and services. Marketing managers must plan and control the development and marketing of products. Financial manager: those managers responsible for planning and overseeing the financial resources of a firm. Must collect funds, pay debt, establish trade credit, obtain loans, control cash balances, plan for future financial needs. Their overall objective is to increase a firms value- and thus a stockholders" wealth. Must ensure the company"s earnings exceed its costs (profit) Must develop clear picture of why a firms needs funds. Financial managers must distinguish between 2 different kinds of financial outlays- short term expenditures (operating) and long term expenditures (capital) Accounts payable: unpaid bills owed to suppliers + wages and taxes due within the upcoming year. Inventories: materials and goods currently held by the company that will be sold within the year: 3 basic types of inventories:
