MGM101H5 Chapter Notes - Chapter 11: Unsecured Debt, Cash Flow Statement, Secured Loan
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MGM101H5 Full Course Notes
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Chapter 11 - financial management finance is the function in a business that acquires funds for the firm and manages those funds within the firm. Finance activities include preparing budgets; doing cash flow analysis; and planning for the expenditure of unds on such assets as plant, equipment, and machinery. Financial management is the job of managing a firm"s resources so it can meet its goals and objectives. They are responsible for seeing that the company pays its bills. They also buy merchandise on credit (accounts payable) and collecting payment from customers (accounts receivables). This involves analyzing short-term and long- term money flows to and from the firm. It involves three steps: (1) forecasting short-term and long-term financial needs, (2) developing budgets to meet those needs, and (3) establishing financial control to see how well the company is doing what it set out to do.