ARBUS101 Chapter Notes - Chapter 17: Cash Flow, Chartered Accountant, Financial Plan
14 Dec 2015
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Financial management: the job of managing a firm"s resources to meet its goals and objectives. Financial manager: examines the financial data prepared by the accountants and recommend strategies for improving the financial performance of the firm: 2 responsibilities: obtain funds and to effectively control the use of those funds. The value of understanding finance three of the most common reasons a firm fail financially is : 1. Undercapitalization (insufficient funds to start a business: 2. 2 friends started a company called parsley patch on a low budget. They started on a budget of which was quickly gone after creating a logo and label design. Pretty soon they both invested more than ,000 of their own money to keep the business from being undercapitalized. In beginning their company was doing well they sold their products to various other retailers, however they were not earning profits.
