MGTA02H3 Chapter 10: MGTA02 - Chapter 10
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MGTA02H3 Full Course Notes
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Mgta02 chapter 10 managing capital: the function of finance. Financial management: planning, organising, leading and controlling the finding and using of capital. Chief financial officer (cfo): the senior manager responsible for overseeing the financial management of the entire organisation. What financial managers do: budgeting, investment appraisal, capital raising, investor relations, financial. A business must spend money before it can make money: must hire workers, rent offices, purchase office equipment, and then begin production. Can take time before a business can break-even. Until then, must rely on the money from owner or borrowed money. Budget: a forecast estimate of the cost of the plans and projects that the organisation wants to carry out in the coming period (derived from old french word purse) Budget deficit: when the cost of an organisation"s business" plans and projects exceeds its inflows: must do two things if reached this stage: 1: borrow money or cut back on some of its plans.
