B A 323 Chapter Notes - Chapter 1: Sole Proprietorship, Cash Flow, Capital Structure
17 Jul 2018
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The four basic areas: corporate finance 2) investments 3) financial institutions 4) international finance. Financial manager (cfo), or vp of fiance, coordinates the activities of the treasurer and the controller. The controller"s office handles cost and financial accounting, tax payments, and mis. The treasurer"s office is responsible for managing the firm"s cash and credit, its financial planning, and its capital expenditures. Capital budgeting: planning and managing a firm"s long term investments. Id investment opportunities that are worth more to the firm than they cost to acquire; value of the cash flow generated by an asset exceeds the cost. Capital structure: the specific mixture of long-term debt and equity the firm uses to finance its operations. Working capital management: short term assets, such as inventory, and short-term liabilities, such as money owed to suppliers. Day to day activity that ensures the firm has sufficient resources to continue its operations and avoid costly interruptions.
