MGTA02H3 Chapter 20: Management II Chapter 20
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MGTA02H3 Full Course Notes
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Management chapter 20: financial decisions and risk management. Objectives of the financial manager: to increase firm"s value (and stockholders" wealth) by making decisions to improve status (in corporations, profits = increase in value of common stock) 2/10, net 30 means that customers have 2% discount if they pay within 10 days, must pay full price within 30 days. Levi straus has rolls of denim: work-in-process inventory: that portion of a firm"s inventory consisting of goods partway through the production process (ex. Fixed assets: items that have a lasting use or value. Trade acceptance: trade draft that has been signed by the buyer. Secured short-term loans: bank loans are vital source of short-term funding (involve promissory note, collateral: any asset that a lender has the right to seize if a borrower doesn"t not repay a. Secured loans: a short term loan in which the borrower is required to put up collateral loan.
