Management and Organizational Studies 1023A/B Lecture Notes - Lecture 6: Accounts Payable, Common Stock, Lead Management

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Christina Maco

Document Summary

Finance: the science or study of the management of funds. How money is allocated between lenders and borrowers. Lenders= banks, but also people, companies, and government. Have excess $ to lend out or invest. Borrowers= anyone who"s receiving the money from the lenders. Can be anyone from the above group on the receiving end. Banks are also borrowers- they"re borrowing your money too. The goal of the firm: talking about company: the goal of the firm is the create value for the firm"s shareholders. Then they outsourced to china because they can make them faster and cheaper. This lead them to have poor profitability and caused their stick price to go down. Role of management: management serves as an arbitrator and moderator between conflicting interest groups or stakeholders and objectives, different stakeholders: assets=liabilities + equity. On our liabilities side we have payables: accounts payable are payable to suppliers. Wages payable is money you owe to your employees.