RSM100Y1 Lecture : Finance.docx
4 Apr 2012
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Document Summary
Finance is the business function involving a firm"s day to day financial activities and decisions about a firm"s long-term investments and how to obtain those funds to pay for them. Corporate finance: how companies obtain and use funds. Makes decision that will best bring in sustaining future profits for firm: traders. Conducts trades for client firms to help meet their financial goals. Evaluates investments and makes buy, sell, and hold recommendations on securities: financial planners (cfps) Assists individuals/firms in achieving long-term financial goals by setting up investing programs to do so. Financial planning: a plan for achieving a desired financial status in the future. Cash flow management: managing the pattern of cash inflows (revenues) and outflows (debt payments, investing funds that are not needed to service debt, funds must either be committed to maintaining the firm, or earning interest, not sitting idle. Pay for materials and labour on borrowed funds in necessary.
