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Unformatted text preview: Ch-18Describe the importance of finance and financial management to an organization.Explain the responsibilities of the financial manager.Understand what is meant by the time value of money.Explain the difference between debt financing and equity financing, and know the advantages and disadvantages of each. Identify and describe sources of short-term and long-term capital. Financial Management-Planning for the expenditures of funds, knowing how much youll need when-Acquiring funds for the firm, including finding a source for capital and debt vs. equity funding. Managing the funds you have, and watching the cash flow especially. I t all about knows the time value of money, or how to get your money to work for you. Money draws interest over time. Whether you owe it or invest it be aware of the power of compounding interest. Understand the use of leverage, i.e. making a smart investment w/borrowed money. The Money in your Accounts Receivable is working for someone elseuntil you collect it. until you collect it....
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