MGTA02H3 Chapter 10: chapter 10 textbook notes

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28 Apr 2011
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MGTA02H3 Full Course Notes
MGTA02H3 Full Course Notes
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Financial manager: plan and control financial asset (cid:0) increase firm"s value, improve financial status. Financial manager increasing firm"s wealth (cid:0) cash flow management: cash flow into firm (revenue), out of firm (debt payment) Finance: responsibility for long-term investment, pay it, everyday financial activities, manage risk. Financial control: process of checking actual performance against plan, ensure desire financial status is achieved. Financial plan: how to reach financial position, include projection for source and uses of fund. Credit policy: rules governing firms" extension of credit to customer. Working capital (cid:0) reduce working capital: more useful cash flow and raise earning permanently. Long-term (capital) expenditure: not sold or convert into cash, expensive, long period of time. Short-term funds (cid:0) trade credit: granting of credit by selling firm to buying firm. open book credit: seller ship merchandise on faith. promissory note: buyer sign promise to pay agreement before ship. trade draft: buyer sign statement of payment term attached to merchandise by buyer.