MGMT 1 Chapter Notes - Chapter 18: Revolving Credit, Secured Loan, Cash Flow
21 Jul 2016
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Finance the function in a business that acquires funds for the firm and manages those funds within the firm. Financial management the job of managing a firm"s resources so it can meet its goals and objectives. Financial managers managers who examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm. 3 most common financial problems undercapitalization poor control over cash flow inadequate expense control. Short-term forecast forecast that predicts revenues, costs, and expenses for a period of one year or less. Cash flow forecast forecast that predicts the cash inflows and outflows in future periods, usually months or quarters. Long-term forecast forecast that predicts revenues, costs, and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future. Budget a financial plan that sets forth management"s expectations and, on the basis of those expectations, allocates the use of specific resources throughout the firm.
