BUS 201 Chapter Notes - Chapter 15: Unsecured Debt, Trade Credit, Accounts Payable
5 Feb 2018
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Financial managers plan and control the acquisition and dispersal of the company"s financial assets. Finance: the business function involving decisions about a firm"s long-term investments and obtaining the funds to pay for those investments. Typically involves four responsibilities: determining a firm"s long-term investments, obtaining funds to pay for those investments, conducting the firms everyday financial activities, managing the risks that the firm takes. Objectives of the financial manager: a financial managers overall objective is to increase a firm"s value and sockholders" wealth. Financial managers do many things to increase a firm"s value: collect funds, pay debts, establish trade credit, and plan for future financial needs. Financial managers must ensure that a company earns a profit. Various responsibilities of the financial manager in increasing a firms wealth fall into three general categories: Financial control: the process of checking actual performance against plans to ensure that the desired financial status is achieved. Involves monitoring revenue inflows and making appropriate financial adjustments.
