MGM101H5 Chapter Notes - Chapter 11: Cash Flow, Financial Plan, Commercial Finance
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MGM101H5 Full Course Notes
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Document Summary
Is a key responsibility of the financial manager in a business: planning"s importance in managerial functions and planning your career, the overall objective of financial planning is to optimize the firm"s profitability and make bets use of its. Involves 3 steps: forecasting both short-term and long-term financial records, developing budgets to meet those needs, establishing financial control to see how well the company is doing what it is set out to do. Ties together all of the firm"s other budgets and summarizes the business"s proposed financial activities. Defined as the projection of dollar allocations to various costs and expenses needed to run or operate a business, given projected revenues. How much will a firm spend on supplies, rent, advertising, research, salaries. Generally the most detailed (firms will prepare this budget for each of their divisions/departments) Most used budget that a firm prepares. Most prepare on a monthly basis for the next 12 months.
