MGT 181 Chapter Notes - Chapter 1: Sole Proprietorship, Capital Structure, Cash Flow
Document Summary
In charge of the financial decisions that the company makes. An employee of the firm rather than an owner (stockholder) Coordinates the controller"s office and the treasury. The process of planning and managing a firm"s long-term investments. Looking for assets with a cash flow that exceeds the cost of the asset. What you look for depends on the business. Need to pay attention to when you will receive the benefits and the likelihood that you will receive all or any of the benefits (cash) Size, timing, and risk evaluations are essential. The specific mixture of long-term debt and equity the firm uses to finance. Need to figure out the best mixture for the firm operations. Need to figure out what is the best way to raise the money. Long-term funding can be expensive and difficult to acquire. The short term assets of the firm. Most common type of business because it is easiest to start up.