COMMERCE 1E03 Chapter Notes - Chapter 14: Callable Bond, Preferred Stock, Stock Certificate
Document Summary
Finance: function in a business that acquires funds for the firm and manages those funds within the firm, preparing budgets; cash flow analysis; planning for expenditure of funds on assets (plant, equipment, machinery) Financial management: the job of managing a firm"s resources so it can meet its goals and objectives. Financial managers: managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm, can make sound decisions only if they understand accounting info, tasks: Main task is to obtain money and then control the use of that money effectively. Responsible for seeing that the company pays its bills. Buying merchandise on credit (accounts payable) and collecting payment (accounts receivable) Paying company"s bills & collecting overdue accounts receivables three most common ways for a firm to fail financially: undercapitalization (lacking funds to start and run the business, poor control over cash flow, inadequate expense control.