Chapter 17

Chapter 17 - Introduction to Business . Minneapolis...

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Introduction to Business Instructor: Dave Skogstrom Office: Management Education Center, Room 1290 Phone: 612-659-6422 Email: [email protected] .
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Chapter 18 Financial Management L e a r n i g   G o l s Identify the functions performed by a firm’s financial managers. Describe the characteristics and functions of money. Identify the various measures of the money supply. Explain how a firm uses funds. Compare the two major sources of funds for a business. Identify the likely sources of short- term and long-term funds for business operations. Describe the financial system and major financial institutions. Explain the Federal Reserve System and its tools. Describe the global financial system. 1 2 3 4 5 6 7 8 9
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Finance Business function of planning, obtaining, and managing a company’s funds in order to accomplish its objectives effectively and efficiently. THE ROLE OF THE FINANCIAL MANAGER Financial manager Executive who develops and implements the firm’s financial plan and determines the most appropriate sources and uses of funds. Chief financial officer Head of an organization’s finance operation. • Reports directly to CEO or COO. • Often a member of the board of directors.
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• Three executives typically report to the CFO: • Vice president for financial management or planning • Treasurer • Controller Risk-return trade-off Optimal balance between the expected payoff from an investment and the investment’s risk. The Financial Plan Financial plan Document that specifies the funds a firm will need for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds. • What funds will the firm require during the appropriate period of operations? • How will it obtain the necessary funds? • When will it need more funds?
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5 Financial Manager Financial manager: responsible for developing and implementing the financial plan plus determining the best sources and uses of funds. Mgrs. need to continually balance risks with expected financial returns.
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This note was uploaded on 11/26/2011 for the course BUSN 1140 taught by Professor Skogstrom during the Fall '10 term at MCTC.

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Chapter 17 - Introduction to Business . Minneapolis...

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