COMM-2026EL Chapter Notes - Chapter 1: Life Insurance, Corporate Security, Market Trend
10 Sep 2017
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In a large corporation, the financial manager is in charge of answering these 3 questions! An important feature of large corporations is that the owners (shareholders) are not usually directly involved in making business decisions. Instead, the corporation employs managers to represent the owners" interests and make decisions. The chief financial officer (cfo) is usually the top financial manager: the treasurer oversees cash management, capital expenditures, and financial planning, the controller oversees taxes, cost accounting, financial accounting, and data processing. Capital budgeting the process of planning and managing a firm"s investment in long-term assets. Tries to identify investment opportunities that are worth more to the firm than they will cost to acquire. Evaluates the size, timing, and risk of future cash flows. Financial managers must be concerned with not only with how much cash they expect to receive, but with when they expect to receive it and how likely they are to receive it.
