MGM101H5 Chapter Notes - Chapter 10: Retained Earnings, Cash Flow, Trade Credit
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MGM101H5 Full Course Notes
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Document Summary
All businesses produces goods and services, and need inputs to convert into outputs. Every business needs some sort of financial resource to conduct activities. Financial management is about acquiring financial resources and controlling/managing the use of those financial resources. Even countries require financial management to make sure enough money to pay bills. Governments can do this through taxes, but most countries have a lot of debt. Financial management critical for both short-term and long-term. Finance: the business function that is responsible for cash acquisition and disbursements. Managing the financial resources of the organization. Planning, budgeting, obtaining funds, controlling funds (funds mgmt. ), auditing, managing taxes, advising top management on financial matters. Vital that financial managers in any business stay abreast of changes and opportunities in finance and adjust to them (anticipate and adjust for the future) Financial planning process: forecast cash flow: short-term and long-term uses, budget cash needs: operating, cash, and capital.
