About This Chapter
Financial Management - Chapter Summary and Learning Objectives
The lessons in this chapter will give you a solid understanding of the basic terms and principles of financial management. Experienced instructors will show you just what financial managers do and give you a look at how financial planning works, including the three key types of budgets. Another lesson covers financial controls and their purpose. You'll also learn about debt capital, equity capital and long- and short-term financing. This chapter's lessons will teach you about topics including:
- Capital, cash and operating budgets
- Why firms need operating funds
- What financial controls are
- Debt capital and equity capital
- Short-term and long-term financing sources and the optimal uses of each
|The Role and Responsibilities of Financial Managers||Explain the role and responsibilities of financial managers.|
|The Financial Planning Process||Outline the financial planning process, and explain the three key budgets in the financial plan.|
|Establishing Financial Controls and Securing Operating Funds||Discuss the purpose of financial controls. Explain why firms need operating funds.|
|Debt Capital Vs. Equity Capital||Distinguish between debt capital and equity capital.|
|Sources of Short-Term Financing||Discuss the need for short-term financing. Identify and describe different sources of short-term financing.|
|Sources of Long-Term Financing||Discuss the need for long-term financing. Identify and describe different sources of short-term financing.|
1. The Role and Responsibilities of Financial Managers
Financial managers play a pivotal role in the success of companies. In this lesson, you'll learn about the duties and responsibilities of financial managers. You'll also have a chance to take a short quiz after the lesson.
2. Debt Capital Vs Equity Capital
Sufficient capital is essential for starting, maintaining and growing a business. In this lesson, you'll learn how a corporation can raise capital through equity and debt. You'll also learn about the advantages and disadvantages of each approach.
3. Sources of Short-Term Financing
Companies often need to utilize financing to cover shortfalls in cash flow. In this lesson, you'll learn about sources of short-term financing available to companies including trade credit, lines of credit, bank loans and credit cards.
4. Sources of Long-Term Financing
Some businesses require a large amount of capital to get off the ground or expand. In this lesson, you'll learn about sources of long-term financing, including commercial loans, selling equity and issuing debt.
5. The Financial Planning Process
Financial planning is essential for the success of any business. In this lesson, you'll learn about the financial planning process that businesses perform, including preparation of a master budget, capital budget and cash budget.
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Other chapters within the Business 100: Intro to Business course
- The Dynamic Business Environment
- Practicing Social Responsibility and Ethical Behavior in Business
- Economics and Business
- Business in Global Markets
- Forms of Business Ownership
- Entrepreneurship and Small Business
- Managing and Leading in Business
- Leadership Styles in Business
- Organizational Management
- Business Production and Operations
- Workplace Productivity & Motivation
- Basics of Human Resources
- Managing the Employer-Worker Relationship
- Business Marketing Basics
- Product Development and Retailing
- Product Distribution & Supply Chain Management
- Pricing Strategy in Marketing
- Product Promotion in Business
- MIS Basics in Business
- Implications of Information Technology
- Risk Management in Business
- Accounting Basics
- Securities Markets and Business
- Money and Financial Institutions
- Studying for Business 100