COMMERCE 1E03 Lecture Notes - Lecture 17: Unsecured Debt, Callable Bond, Revolving Credit
7 Apr 2017
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Document Summary
Finance: the function in a business that acquires funds for the firm and manages them within the firm. Financial management is the job of managing a firm"s resources so that the firm can meet its goals and objectives. Financial managers examine the financial data prepared by accountants and make recommendations to top executives regarding strategies for improving the financial strength (health) of the organization. A key responsibility is to obtain money and then control the use of that money effectively. Financial managers are responsible for seeing that the company pays its bills. Short term funds: monthly expenses, unanticipated emergencies, cash flow problems, expansion of current inventory, temporary promotional programs. Long term funds: new-product development, replacement of capital equipment, mergers or acquisitions, expansion into new markets (domestic or global, new facilities. Information is captured in your credit profile: character, capacity, capital, conditions. Debt financing: funds raised through various forms of borrowing that must be repaid.
