MGMT 1 Chapter Notes - Chapter 18: Trade Credit, Cash Flow, Accounts Receivable
Document Summary
Finance: function in a business that acquires funds for a firm and manages them within the firm. Financial managers" jobs (treasury function and control function: advise top management on financial matters, manage taxes, manage credit o. Kathleen pays with company credit for everything b/c it"s her company; company may fail b/c: inadequate expense control. Undercapitalization: not enough money to star w/ Poor cash control: too much money out and not enough in. Inadequate expense control: letting employees steal you blind. Use of historic data to predict future needs. Used in all types of resource planning. In financial planning it is used to decide how to allocate money to various budgets. This budget highlights firm"s spending plans for major asset purchases that often require large sums of money: capital. What part of the company is getting the highest budget. Set forth management"s expectations for revenues and allocates the use of specific resources throughout the firm o o.
