RSM100Y1 Chapter Notes - Chapter 17: Financial Plan, Capital Structure, Tax Avoidance
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Pla(cid:374)(cid:374)i(cid:374)g, o(cid:271)tai(cid:374)i(cid:374)g, a(cid:374)d (cid:373)a(cid:374)agi(cid:374)g the (cid:272)o(cid:373)pa(cid:374)y"s fu(cid:374)d to a(cid:272)(cid:272)o(cid:373)plish its o(cid:271)je(cid:272)tives as effe(cid:272)tively a(cid:374)d efficiently as possible. Are the executives who developer and carry out their fir(cid:373)"s financial plan and decide on the most appropriate sources and use of funds. They also work on the sale of new securities to investors: controller: is the chief accounting manager, job duties include keeping the (cid:272)o(cid:373)pa(cid:374)y"s books, preparing financial statements and conducting internal audits. Financial professionals continually balance risks with expected financial returns. Risk is the uncertainly of a gain or loss. Return is the gain or loss that results from an investment over a specified period of time. They try to maximize the wealth of their fir(cid:373)"s shareholders by getting the right balance. Risk-return trade-off: the process of maximizing the wealth of the fir(cid:373)"s shareholders by striking the right balance between risk and return.
