Management and Organizational Studies 2310A/B Study Guide - Midterm Guide: Arbitrage, Double Taxation, Life Insurance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Jun Wang

Document Summary

1-what lt investments to take on (buildings, equipment etc) 2-where will you get lt financing to pay for investments. 3-how will you mange your everyday financial activities (collecting and paying money) Cfo reports to coo, cfo/vp of finance coordinates the activity of the treasurer and controller. Controller handles cost and financial accounting, tax payments, and management info systems. Treasurer manages firms cash, financial planning, and its capital expenditures. We will focus on treasurers activity bc it has to do with the 3. Capital budgeting (planning and managing a firms lt investments) Has to do with 1st question (lt investments). Financial manager identifies opportunities worth acquiring for firm (cash flow generated from investment > cost of asset) Must evaluate risk and timing (likely hood of getting paid from customers and how long it will take them to pay). Capital structure/financial structure refers to the mixture of st debt, lt debt, and equity the firm uses to finance operations.