Better Business, 5/e

Chapter 15 Summary

1. 15-1 Define financial management and describe how financial managers fulfill their responsibilities.

• Financial management is the strategic planning and budgeting of corporate funds for current and future needs.

• A financial manager, often the CFO of a corporation, assumes financial management responsibilities. Financial managers generally have an accounting background.

• Financial management includes forecasting short- and long-term needs, developing budgets and plans to meet the forecasted needs, and establishing controls to ensure that the budgets and plans are being followed.

1. 15-2 Describe the options small businesses have to finance short-term business needs.

• It may be necessary to obtain short-term financing ...