MGM101H5 Chapter 11: MGM101 Ch. 11
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MGM101H5 Full Course Notes
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Finance: the function in a business that acquires funds for the firm and manages those funds within the firm. Financial management: the job of managing a firm"s resources so it can meet its goals and objectives. Financial managers: managers who analyze financial data and make recommendations to top executives regarding strategies for improving the financial strength of a firm. *accountants are to lab technicians as financial managers are to doctors. 3 ways for a firm to fail financially: undercapitalization, poor control over cash flow. Financial managers must keep abreast of changes in tax law; carefully analyze the tax implications of various managerial decisions in attempt to minimize the taxes paid by the business. Internal audit, checks on journals, ledgers, and financial statements prepared by the accounting department. Financial planning: forecasting both short-term and long-term financial needs, developing budgets to meet those needs, establishing financial control to see how well the company is doing what it is set out to do.
