The Role of Financial Management in a Firm
Summarize the role of management as it relates to finance in a corporation. In your post, address the following:
- Indicate the various aspects of finance that management must understand.
- Describe why a manager needs to understand the characteristics and importance of financial markets including risk and efficiency.
- Describe why cash flow is more important than sales in a business.
- Discuss what could happen if management does not fulfill responsibilities related to finance. If you have one, share a real world example from your own professional experience or from an external source.
View the following video:
Important Financial Documents (3:19)
Description: This video looks at the fundamental financial documents every company needs, including the balance sheet, income statement and statement of cash flow.
In your post, choose one of the financial statements and explain how a manager would use the statement to drive financial analysis and decision-making. Your post should be 200-250 words in length.