BU121 Study Guide - Final Guide: Asset Management, Commercial Paper, Accounts Receivable
Document Summary
Financial management: art and science of managing a company"s money so that it can meet it"s goals. Financial managers: track how money is flowing into and out of the company. Difference between accountant vs. financial manager: managers use financial statements to make financial decisions, accountants only focus on the present financial data. Financial planning - preparation of a financial plan, projects revenues, expenditures and financing needs over a given period. Investment: investing company funds in projects and societies that low risk and high returns. Financing: obtaining funding for company"s operations and investments and seeking the best balance between debt and equity. Main goal: maximize the value of a company to its owners -- private company: value of which it can be sold at, public company, the value of its shares. Financial manager has to consider both short term and long term consequences, if sole focus is to maximize profits -- favors short term gains over long term goals.
