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12 Cards in this Set
- Front
- Back
4 responsibilities of financial managers in finance
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1) determine a firm’s long term investments 2) Obtain funds to pay for those investments 3) Conduct the firms everyday financial activities 4) Help manage the risks
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Cash flow management
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managing the patters of cash inflows (revenues) and outflows (debt payments)
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Financial Control
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1) Checking actual performance against strategic plans to ensure that desired goals are achieved
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Budget
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1) Actual Budget (2013 – Actual) 2) Budget 10 % higher – Optimistic 3) Budget 10 % lower – Pessimistic
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Short-Term (Operating) Expenses
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1) Accounts Payable 2) Accounts Receivable 3) Inventory 4) Inventory 5) Working Capital
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Long-Term Capital Expenditures
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fixed assets that have a long life and lasting value
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Short Term Funds
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Allow firms to cover operational expenses and implement short term plans: factoring accounts receivable
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Debt Financing
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Seeking long-term funds through internal financing
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Retained Earnings
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Financing by retaining profits in the firm and paying the bonds ( for high margin companies, oil companies and jewelry stores.
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The Risk-Return Relationship
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1) Investors have various risk return tolerances (80 % chance going up, 20 % going down) 2) give money to companies in order to receive future cash flows
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Liability Insurance
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Worker compensation coverage
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Life Insurance
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group life insurance
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