Фінансовий менеджмент

Finance is that function in a business responsible for acquiring funds for the firm, managing funds within the firm (for example, preparing budgets, doing cash flow analysis), and planning for the expenditure of funds on various assets. Finance managers plan, budget, control funds, obtain funds, collect funds, audit, manage taxes, and advise top management on financial matters.

One of the important functions of a finance manager is to obtain long-term capital. Long-term capital comes from two major sources:

1. Equity capital comes from the owners of the firm.

2. Debt capital comes from borrowing money through the sale of bonds or from banks and other lending institutions.

There are two major forms of long-term debt financing: selling bonds and borrowing from banks and other, financial institutions.

Bond - is a contract of indebtedness that promises to pay the owner a principal amounts

The advantages of bonds include:

unlike stockholders, bondholders have no vote on corporate affairs, thus management retains control over the firm, besides bondholders are creditors, not owners;

bonds are also more flexible than stock; whereas stockholders have ownership forever, bondholders represent more temporary sources of funds that can be tapped when needed.

Bonds also have their drawbacks.. Among the most significant are:

bonds are an increase in debt and may hurt chances for other financing;

interest of bonds is a legal obligation;

the face amount of bonds must be paid when due, unlike stock, which carries no such obligation;

and interest payment hurt cash flow.