HLTHAGE 4Z06 Chapter Notes - Chapter 10: Capital Structure, Prime Rate, Vivarium Inc.
19 Apr 2013
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Financial managers oversee the financial resources of a firm, their objective is to increase the firms" value and thus shareholder"s wealth. Finance (corporate finance) is the business function of making decisions about a firm"s long term investments, how to pay for the them and managing risks. Financial control: checking actual performance against plans, budgets are the backbone of financial control. Financial planning: how a business will reach a financial goal in the future. Short-term (operating) expenses: accounts payable: unpaid bills owed to suppliers plus wages and taxes due within the upcoming year. Largest single category of short-term debt for most firms: accounts receivable: funds due from customers who have bought on credit, tie up funds. credit, credit policies control which buyers are eligible for which type of. Inventories: goods currently held that will sell thing the year. Too little results in lost sales while too much inventory results in opportunity costs of tied up cash.
