MGM101H5 Chapter Notes -Accounts Receivable, Debenture, Investment
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MGM101H5 Full Course Notes
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Document Summary
Types of budgets established in firm"s financial plan. Establishing financial controls: financial control: process in which a firm periodically compares its actual revenues, costs and expenses with its projected ones. Financial management: capital needs increase for various reasons like managing day to day needs of business, controlling credit operations, acquiring needed inventory, making capital expenditures(investments in tangible long term assets such as land, buildings, etc) Trade credit: trade credit: practice buying g/s now and paying for then later, promissory note: written contract with a promise to pay. Financial management: commercial finance companies: organizations that make short term loans to borrowers who offer tangible assets as collateral. Factoring: process of selling accounts receivable for cash. Commercial paper: unsecured promissory notes of ,000 and up that mature in 365 days or less. Debt financing by issuing bonds: bond: corporate certificate indicating that a person has lent money to a firm.
