RSM100Y1 Chapter Notes - Chapter 17: Cash Cash, Financial Plan, Tax Avoidance
Document Summary
Finance: business function of planning, obtaining, and managing the company"s funds to accomplish its objectives as effectively and efficiently as possible. Financial managers: the executives who develop and carry out their firm"s financial plan and decide on the most appropriate sources and uses of funds. Three senior managers often report directly to cfo. Analyzing major investment decisions related to new products, production facilities, acquisitions. Including cash management, tax planning and preparation, shareholder relations. Works on the sale of new security issues to investors. Growing importance of financial professionals reflected in the # of ceos promoted from financial positions. Risk-return trade off: the process of maximizing the wealth of the firm"s shareholders by striking the right balance between risk and return. Return: gain or loss that results from an investment over a specified period of time. Every financial manager must balance risks & returns and adapt to changes in financial system.
