BUS 201 Chapter Notes - Chapter 15: Financial Plan, Promissory Note, Vivarium Inc.
15 Dec 2015
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Document Summary
Financial managers- managers responsible for planning and overseeing the financial resources of a firm. Finance- the business function involving decisions about a firm"s long-term investments and obtaining the funds to pay for those investments. Finance typically involves four responsibilities: determining a firm"s long-term investments, obtaining funds to pay for those investments, conducting the firm"s everyday financial activities, managing the risks that the firm takes. The various responsibilities of a financial manager in increasing a firm"s wealth fall into three categories; cash-flow management, financial control, and. Cash-flow management- managing the pattern in which cash flows into the firm in the form of revenues and out of the firm in the form of debt payments. Financial control- the process of checking actual performance against plans to ensure that the desired financial status is achieved. Financial plan- a description of how a business will reach some financial position it seeks for the future; includes projections for sources and uses of funds.
