BU121 Chapter Notes - Chapter 5: Venture Capital Financing, Trade Credit, Accounts Payable
Document Summary
Why it is so difficult to raise money for entrepreneurial ventures. Finance is critical to the success of all companies because to get money you must first spend. Social capital and the behavioral side of finance. The role of finance and the financial manager money on supplies, wages, equipment etc. Financial management is the art and science of managing a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:373)o(cid:374)e(cid:455) so that it (cid:272)a(cid:374) (cid:373)eet its goals. Fi(cid:374)a(cid:374)(cid:272)ial (cid:373)a(cid:374)age(cid:396)s (cid:373)ust t(cid:396)a(cid:272)k (cid:449)he(cid:374) (cid:373)o(cid:374)e(cid:455) is (cid:272)o(cid:373)i(cid:374)g i(cid:374) and out of the company so they know if/when they will have money to pay bills. Fi(cid:374)a(cid:374)(cid:272)e is (cid:448)e(cid:396)(cid:455) (cid:272)losel(cid:455) (cid:396)elated to a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g. a(cid:272)(cid:272)ou(cid:374)ta(cid:374)t"s (cid:272)olle(cid:272)t a(cid:374)d p(cid:396)ese(cid:374)t data. Fi(cid:374)a(cid:374)(cid:272)ial managers use this data to make decisions. Finance managers focus on cash flows (inflows and outflows of cash for a company. Financial planning-preparing the financial plan, projecting revenue, expenditures, and financing needs over a given period. Investment investing money in things that give high return in relation to their risk.
