BUS 201 Chapter 15: Chapter 15: Financial Decisions and Risk Management
4 Dec 2016
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Document Summary
Lo-1 describe the responsibilities of a financial manager. Financial manager plan and control the acquisition and dispersal of the company"s financial assets. Finance involves: determining a firm"s long-term investments, obtaining funds to pay for those investments, conducting the firm"s everyday financial activities, managing the risk that the firm takes. Firms value: collect funds, pay debts, establish trade credit, obtain loans, control cash balances and plan for future financial needs. They improve financial status, makes sur revenue exceed costs. Cash-flow management: managing the pattern in which cash flows into the firm in forms of revenues and out of the firm in form of debt payments. Firms need to make sure they always have enough money on hand to buy goods and services and put funds that are not immediately needed into investments. Financial control: process of checking actual performance against plans to ensure that the desired financial status is achieved.
