MGMT 1000 Chapter 20: Chapter 20.docx

• School: University of Guelph
• Department: Management
• Course: MGMT 1000
• Professor: Trent Tucker

Document Summary

Financial managers plan and control the acquisition and dispersal of the company"s financial assets. Finance business activity involves 4 responsibilities: determining a firms long-term investments, obtaining funds to pay for those investments, conducting the firms everyday financial activity, helping to manage the risks that the firm takes. Increases a firms value and thus stockholders" wealth. Accountants create data to reflect a firm"s financial status, financial managers make decisions for improving that status: must ensure that a company"s earnings exceed its costs. Their responsibilities: cash flow management managing the patter in which cash flows in to the firm in the form of revenues and out of the firm in the form of debt payments requires careful planning. Financial control the process of checking actual performance against plans to ensure that the desired financial status occurs: budgets are the backbone of financial control and provide the measuring stick against which performance is evaluated.