[COMM 203] - Midterm Exam Guide - Comprehensive Notes for the exam (50 pages long!)
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Risk: what risks are involved and are you being adequately compensated: northern gateway pipeline a major investment decision, http://www. theglobeandmail. com/globe-investor/investment- ideas/streetwise/northern-gateway-pipeline-could-raise-the-price-of- gasoline/article4522968/ Financial managers try to answer some or all of these questions. The top financial manager within a firm is usually the chief financial officer (cfo: treasurer oversees cash management, capital expenditures and financial planning, controller oversees taxes, cost accounting, financial accounting and data processing. Investment decisions determine the mix and the type of assets on the left side of the firm"s balance sheet capital budgeting. The financial manager attempts to maintain optimal levels of each type of current asset, and decides which fixed assets to acquire, modify, replace, or liquidate. These decisions are important because they affect the firm"s success in achieving its goals and creating shareholder wealth. Financial manager is not alone in making these decisions. Financing decisions deal with the right-hand side of the firm"s balance sheet capital.
