FINA 470 Chapter Notes - Chapter 1: Efficient-Market Hypothesis, Effective Interest Rate, Trend Analysis
24 Jan 2017
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Chapter 1: identify at least five different internal and external users of financial statements. Internal users: owners, managers, employees, directors, internal auditors; A company"s goals and objectives are captured in its business plans (or strategies) that describe the company"s purpose, strategy, and tactics. The business plan assists managers in focusing their efforts and identifying expected opportunities and obstacles. A company requires financing to carry out its business plan. Financing activities are the means companies use to pay for these ventures. A company must take care in acquiring and managing its financial resources because of both their magnitude and their potential to determine success or failure. There are two main sources of business financing: equity investors (referred to as owner financing) and creditors (referred to as non-owner financing). Investing activities are the means a company uses to acquire and maintain investments for purchasing, developing, and selling products and services.
