BU121 Chapter Notes - Chapter 5-8: Liability Insurance, Enterprise Risk Management, Credit Risk
Document Summary
Role of finance and the financial manager: financial management the art and science of managing a company" money so that it can meet its goals, financial manager role: Financial planning preparing financial plan (which projects revenue, expenditure) Investment (spending money) investing company"s funds in projects and securities that provide high returns in relation to their risks. Financing (raising money) obtaining funding for company"s operations and wants balance between debt and equiy. Goal: maximize the value of the company. Private: the price a share could be sold at. Public: price of it"s shares: finance is important because you could run out of cash and you need it to operate. Form basis for cash budgets: long term investments - projections of a company"s activities and the funding for those activities over a period that is longer than a year (2-10) How organizations use funds short term expenses, and obtain funds short and long term debt and equity.