blank Chapter 8 Notes

blank Chapter 8 Notes - Chapter 8: Assessing a New Ventures...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
I. Financial management deals with: 1. ____________ 2. Managing a company’s finances so to achieve _____________________. How much cash do we have on hand? Do we have enough cash to meet our short-term obligations? How efficiently are we utilizing our assets? How does our growth and net profits compare to those of our industry peers? Where will the funds we need for capital improvements come from? Are there ways we can partner with other firms to share risk and reduce the amount of cash we need? Overall, are we in good shape financially ? II. Financial Objectives of a Firm: 1. Profitability - the ability to earn a profit. 2. Liquidity - a company’s ability to meet its short-term financial obligations. 3. Efficiency - how productively a firm utilizes its assets relative to its revenue and its profits. 4. Stability - the strength and vigor of the firm’s overall financial position. III.The Financial Management Process to assess whether its ________________ are being met, firms rely on analysis of financial __________, ___________, and ___________. - Three Steps involved: 1. ________________ - a written report that quantitatively describes a firm’s financial health. 2. ________________ - Ongoing analysis of a firm’s financial results/ratios 3. ______________ - an estimate of a firm’s future income and expenses, based on its past performance, its current circumstances, and its future plans. IV. Financial Statements - reflect __________________ (usually prepared on a regular basis—monthly, quarterly, annually Most common: 1. Income statement 2. Balance sheet
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/17/2011 for the course MNGT 305 taught by Professor Chadwick during the Summer '11 term at Nicholls State.

Page1 / 3

blank Chapter 8 Notes - Chapter 8: Assessing a New Ventures...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online