11.11.10 - 11.11.10 Financial Management The Role of...

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11.11.10 Financial Management - The Role of Finance and Financial Managers Finance – function in a business that acquires funds for the firm and manages those funds within the firm Financial management – 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 The Value of Understanding Finance Three of the most common reasons a firm fails financially are: Undercapitalization => insufficient funds to start the business Poor control over cash flow Inadequate expense control What is Financial Management? - Financial Planning Forecasting Financial Needs 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
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This note was uploaded on 11/21/2010 for the course BUSINESS 101 taught by Professor Monastersky during the Fall '10 term at Bergen Community College.

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11.11.10 - 11.11.10 Financial Management The Role of...

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