BUS 201 Chapter Notes - Chapter 15: Unsecured Debt, Callable Bond, Preferred Stock
15 Aug 2016
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Lo 1 describe the responsibilities of a financial manager. Financial managers = managers responsible for planning and overseeing the financial resources of a firm. Financial manager"s overall objective: increase firm"s value and stockholder"s wealth. They also collect funds, pay debts, establish trade credit, obtain loans, control cash balances, plan for future financial needs. Cash-flow management = managing pattern in which cash flows into firm (revenues) and out of firm (debt payments) Financial control = process of checking actual performance against plans to ensure desired financial status is achieved. Financial plan = description of how business will reach some financial position it seeks for the future; incl projections for sources & uses of funds. Lo 2 distinguish between short-term (operating) and long-term (capital) expenditures. Short-term typically less than 1 yr; long-term > 1 yr. Accounts payable = unpaid bills owed to suppliers + wages & taxes due w/in 1 yr. Generally largest single category of short-term debt.
