MGMT 3320 Chapter 1: MGMT3320 Chapter 1

• School: University of Guelph
• Department: Management
• Course: MGMT 3320
• Professor: Rachel Elliott

Document Summary

Chapter 1: the goals and functions of financial. Financial manager must analyse & evaluate changing influences on the firm: Acquiring & investing capital (stock, bond, derivative markets) These immediately effect cash flow in/out of firm impacting value. Financial management is concerned with: managing capital efficiently (assets & liabilities, understanding global financial markets, assessing, enhancing & creating value. Finance discipline has developed models that focus on creating value in firm by: Investing in value-creating assets (current-short term, & capital-long term) Economics: provide broad picture of economy & measures that influence decisions/performance (like. Gdp, disposable income, inflation, unemployment, interest rates etc. : provide understanding of structure of our mixed capitalist system (gov"t regulation, banks, financial markets etc. , structure for decision making (risk analysis, price theory with supply/demand etc. ) Accounting: provides language of finance (assets, liabilities, cash flow, provides financial data (statements, balance sheets etc. ) (because financial manager must know how to interpret this data & use to generate best value)