MGMT 100 Study Guide - Final Guide: Tax Deduction, Credit Score, Sinking Fund
Document Summary
Lo1 explain the role and responsibilities of financial managers. Finance is the function in a business that acquires funds for the firm and manages them within the firm: preparing budgets, completing cash flow analysis, and planning asset fund expenditures. Financial management is the job of managing a firm"s resources to meet its goals and objectives. Both accounting and finance functions are controlled by the chief financial officer (cfo). Financing a small business is crucial if a firm expects to survive the first five years. Three common reasons firms fail financially are: undercapitalization (insufficient funds to run a business), poor control over cash flow, inadequate expense control. Financial managers are responsible for paying a company"s bills at the appropriate time, and collecting overdue payments to ensure the company doesn"t lose too much money to bad debts. Must stay current and up to date with the changes and opportunities in finance. Minimize the taxes the business must pay.
