In this chapter, students will be able to understand: Explain the role and responsibilities of financial managers; outline the financial planning process, and explain the three key budgets in the financial plan; explain why firms need operating funds; identify and describe different sources of short-term financing; identify and describe different sources of long-term financing. | Financial Management Chapter 18 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Explain the role and responsibilities of financial managers. Outline the financial planning process, and explain the three key budgets in the financial plan. Explain why firms need operating funds. Identify and describe different sources of short-term financing. Identify and describe different sources of long-term financing. LEARNING GOALS Chapter Eighteen 18- Finance -- The function in a business that acquires funds for a firm and manages them within the firm. Finance activities include: Preparing budgets Creating cash flow analyses Planning for expenditures Financial Management -- The job of managing a firm’s resources to meet its goals and objectives. WHAT’S FINANCE? The Role of Finance and Financial Managers LG1 18- Financial Managers -- Examine financial data and recommend strategies for improving financial performance. FINANCIAL MANAGERS LG1 | Financial Management Chapter 18 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Explain the role and responsibilities of financial managers. Outline the financial planning process, and explain the three key budgets in the financial plan. Explain why firms need operating funds. Identify and describe different sources of short-term financing. Identify and describe different sources of long-term financing. LEARNING GOALS Chapter Eighteen 18- Finance -- The function in a business that acquires funds for a firm and manages them within the firm. Finance activities include: Preparing budgets Creating cash flow analyses Planning for expenditures Financial Management -- The job of managing a firm’s resources to meet its goals and objectives. WHAT’S FINANCE? The Role of Finance and Financial Managers LG1 18- Financial Managers -- Examine financial data and recommend strategies for improving financial performance. FINANCIAL MANAGERS LG1 The Role of Finance and Financial Managers Financial managers are responsible for: Paying company bills Collecting payments Staying abreast of market changes Assuring accounting accuracy 18- CFO -- Chief Financial Officer CFP -- Certified Financial Planner CFA -- Chartered Financial Analyst Comptroller -- Chief Accounting Officer WHO’S WHO in FINANCE LG2 Financial Planning 18- WHAT FINANCIAL MANAGERS DO LG1 The Role of Finance and Financial Managers 18- WHAT WORRIES FINANCIAL MANAGERS Consumer demand for their firm’s products Credit markets and interest rates Financial regulations from the government Volatility of the dollar Foreign competition Environmental regulations Source: CFO Magazine, , accessed July 2011. LG1 The Role of Finance and Financial Managers 18- Undercapitalization Poor control over cash flow Inadequate expense control WHY DO FIRMS FAIL FINANCIALLY? The Value of Understanding Finance LG1 18- TOP FINANCIAL CONCERNS of COMPANY CFOs - .
