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On the other hand, a company's workforce, patents, goodwill, etc. are some intangible assets. All this, in addition to cash, building and land are some of the total company's assets.
But assets don't come and go as they please. They have to be led
and guided. That's where the financial manager comes in. As illustrated in Figure 1.1, the flow of cash between assets and entities is the financial manager's job. In this figure, the first step (1) is to sell financial assets to the bank (taking a loan). This newly acquired cash is used to buy or employ real assets (2), for example buying new machinery or hiring new personnel...
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