...Q. Why is Finance important for non- finance managers? A. Finance is important to business as without it businesses would not be able to start up or survive. In order to start a business, sources of finance are needed such as grants or loans used to buy essential items such as vehicles, premises and other equipments. It is needed for a business to maintain the running costs such as electricity and rent. It explains the importance of time, risk and returns on investment. The return on investment must always be more than the cost of capital, risk investment should be least. It is also needed in expanding a business. Today’s Managers need to be more commercially aware more so than ever before. Even if they do not have to manage budgets or finances themselves as part of their role they still need to understand about the financials of a company, what it all means and impact of their actions on the bottom line. If one plans the financial side of a business accurately he/she will be able to track the progress of their business in terms of profit and cash surpluses. Accurate financial documents will allow them to keep track of their cash flow and monitor how much of their loans have been paid off. They can measure their success through accurate financial planning. Financial documents will help them in keeping the records as- when company has retained enough profits to expand and improve its business. Improving business performance requires an understanding of the components of...
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...The Importance of Finance Masters in Business Administration The Importance of Finance The field of finance is broad and dynamic. It directly affects the lives of every person and every organization (Gitman, 2009). In recent years, the changing economic and regulatory environments have increased the importance and complexity of finance. Understanding business valuation is critical in business. Analyzing a business’s own value is as important as knowing about the business value of competitors. Business valuation requires both business mind and financial knowledge (Way, 2015). Economic development makes new requirements to enterprise financial management system improvement and development of proposals. The concepts of how you measure value and planning where you want to be in the future are very important. Although a lot of students are never going to be financial managers, a baseline level of knowledge raises the chance of making good decisions, because business managers with financial knowledge can better match available money resources with planned business operations that can generate enough revenue to cover both business expenses and financing costs (Way, 2015). This course is organized with an approach of reinforced coursework to keep the student even is nonfinance specialist in the tune with financial issues and concepts. The book, which been used in the course, is very detailed as well as consistent with the lectures and models. Managerial finance course...
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...Question-1: What is finance? Ans: Finance is the life blood of every corporation. In the era of modern trade and commerce, business firm have to decide from where they will raise fund, where they will invest and how much of the profit will be distributed among the shareholders. “Finance” Came from Latin word “finis” means “dealing with the money”.finace is called the art and science of managing money. At the micro level, finance is the study of financial planning, asset management and fund raising for business and financial institutions. At the macro level, finance is the study of financial institution and financial markets and how they operate within the financial systems in both the domestic and global economics. Scholar’s view: “Finance consists of providing and utilizing the money, capital rights, credit and funds of any kind which are employed in the operation of an enterprise.” _George R Terry “Finance is concerned with the process, institutionsmarkets and instruments involved in the transfer of money among and between individuals, business and governments”. _Lawrence J Gitman From the above discussion, it can be said that finance is the process of financial planning, identification of sources of fund raising, investment of fund, protection of fund, distribution...
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...fully describe these words (finance and accounting) as both have very wide meanings and applications in the business world. Most business has an aim to make profit and to remain solvent and the above two concepts play an important role in achieving this objective. This paper aims to answer the above questions and further goes on to say why both should and are considered a vital part of business and their importance in the whole business set up. Literature Review Accounting has been defined as the soul of the business (Collin P, 2004). Accounting is described as the means by which information is communicated in a firm, and is thus known as the language of business. Accounting is described as a vital function in preventing fraud and corporate corruptions in organisations (Glautier, M.W.E. and B. Underdown, Accounting theory and practice). Accounting is important as it provides information to external parties (stakeholders) by providing a true picture on the business financial position. Finance is described as an administrative function aimed at raising funds for the business (B.B Howard. Introduction to Business Finance). Finance is aimed to maximise the value of the firm and attain the main objectives of the firm; I. Shareholders wealth maximisation II. Profit maximisation This is achieved by determining the optimum capital structure and the efficient utilisation of resources by analysing risk and return (B. B Howard. Introduction to Business Finance). Findings and analysis ...
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...ENL213 ENGLISH FOR BUSINESS STUDY 2 JAN 2012 GROUP ASSIGNMENT CASE STUDY [SUPREMA CARS] YANG YUAN ZHONG I10006326 TONY WONG CHA CHIEN I11009191 LEE WAI HOE I11008687 GOH SU CHIN I11009206 Step 1 Summary of Case Study Suprema Cars is a marque that offers handmade classic English sports cars catering to people who want something different. Approximately 500 automobiles are fabricated annually in the company's plant in northern England. However, the company turned a loss in the previous biennial; which is resulted from declining sales and market share in the prior half decade. Factory workers' morale fell as they felt underpaid and treated unfairly. They objected to the management's decision to expand production, which will impair the quality of the cars, resulting in the escalation of malfunctioning automobiles in the last few months. Solutions available to curb the situation include tolerating lower profit margins, updating the plant, increasing manufacturing significantly, introducing in the United States, undertaking with a South East Asia engine manufacturer, devising green vehicles and obtaining capital plus skills from a European manufacturer. Step 2 Mind Map of Problems 1. Declining sales and profit Change in consumer preferences Insufficient advertising Low demand 1. Decreased reliability Increase in number of broken cars Substantial increase in production 2. O utdated design Change in demographics Younger generation Market wants more modern models ...
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...budgeting is very important in decision making for the financial manager of any firm. Most new projects take time in developing because of the research analysis required in opening a new addition to the company. The cash flow is a huge factor in making the decision of a project. For instance, capital expenditures require firms to outlay large sums of funds to initialize the project. Second, firms will need to formulate ways of generating and repaying these funds once they are initiate. Third, there must be a good since of timing and critical finance decision to make it all happen. The importance of Capital Budgeting, Cash Flows & New Project Capital budgeting requires that any new projects become infused to save money. This can happen by retaining inventory that would lead to outflow of goods and services. Generally, when a project terminates, the working capital is recovered and there is an inflow of working capital. However, the sunk cost cash flow has already occurred which cannot be undone. Managers need to be aware of the importance of cash flow if a new project is lining up with their business. There is critical analyzing of research information to insure that the cash flow is not affected by the new project. For example, if the project is rejected would the cash flow continue to balance out? Or would the cash flow continue to balance if the project is accepted? These are some of the things that managers would have to critically decide in the creation of a new project...
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... As a finance manager, managing banking relations has been both a difficult and challenging task. Many treasurers inherited banking relationships that had to be maintained with the various banks that composed the corporation’s core group while achieving their main objective: to ensure that all the company’s needs were met reliably and within a reasonable cost (Zietlow and Maness 289). But what are the things that a finance manager should focus on when trying to determine what bank(s) to chose? Is it based solely on cost? How often so finance managers shop around? Or is it better to just sit tight with the current option as the familiarity with your current bank and their way of doing business is worth the “potential” cost savings of going elsewhere and having to learn their system. Historically, CFO and finance managers were prompt to consolidate their banking needs and services within one banking institutions but as the banking landscape keeps morphing/merging and more banks keep adopting AFP standards, it has become increasingly easier to understand the workings of not only your banking institution, but all others as well – which leads to shopping around for cheaper alternatives for different services. From June to September of 2012, Ernst and Young conducted telephone interviews with treasurers, CFOs, and other senior financial executives. The companies interviewed were spread among 9 industry sectors, throughout 11 countries and they ranked the importance. The interview...
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...investor rights and finances. The benefits of current corporate governance practices will be assessed as well as the disadvantages that exist in fully managing and mitigation the risks that investors face in the corporate financial environment. Additionally, the importance of the practice and implementation of corporate governance will be examined as a means of accurately demonstrating the overall merit and usefulness of corporate governance in today’s financial environment. Investor Protection: Defond & Hung, (2004) defined investor protection as the extent of the laws that protect investors’ rights and the strength of the legal institutions that facilitate the enforcement of those laws where they exist. This definition was further expanded by La Porta et al (2000) who postulated strong investor protection laws and similarly robust enforcement institutions were the main contributors to markets that promoted investment simply because the rights of the investors were seen to be adequately protected and the risk of exapropriation by managment was greatly reduced. It was therefore seen as critical that the protection of investor’s rights was necessary as minority shareholders were often exploited by creditors and majority shareholders extensively. La Porta, et al., (2000) further posited that, in the absence of strong corporate governance mechanisms, shareholders faced the real risk of returns on their investments being expropriated by managers and other controlling...
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...Finance in the healthcare industry can be a very tricky subject. The primary role of finance in the health services is to plan for, obtain, and make use of resources to increase the productivity and value of the business (Nowicki 2007). Finance is a very important part of the health care industry. It keeps everything on track and in order so that things operate successfully. Without the right person(s) helping to operate the place of business the company can be in a great deal of trouble. When I think of finance I think of cash. In today’s economy cash flow is at its all time low. More people are trying to cut cost and much as they can. This means less doctor visits and sometime not going to the doctor at all. Which means that if your health care business is use to seeing a certain amount of patients and that number suddenly stops that can put some jobs at jeopardy. The role of finance has increased in the healthcare industry. Like I stated previously cash flow is at an all time low. With the high demands of hospitals, long term care, nursing homes, special practices and assisted living, the need for healthcare and funding is growing daily. There is a different age group that is being more catered to due to the aging population around. Funding is necessary for all levels of healthcare organizations, and there are some governmental hospitals/facilities, non-profit, and privately funded that need to be aware of the fast paced changes that are being made financially in the world...
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...12/13/2014 LONDON PROPERTY AND FINANCE Word Count: 4370 except conclusions Table of Contents Introductions 4 Self awareness; 4 Importance for managers and leaders; 4 Continuing Personal and Professional Development [CPPD] 5 The CPD procedure is important for managers and leaders as 5 My role in my own organisation and experience of leadership: 6 My role in London Property and Finance: 6 Change in the management and its impacts on my role: 6 Leadership and identity: 8 Leadership- A preface 8 The current literature on leadership contemporary theories and models- A review: 8 Importance of values in leadership behaviour: 8 Self concept and its Importance to leadership effectiveness: 10 Application and relevance of self awareness to my role in London Property and Finance: 10 Leadership Tools and Techniques-A Brief Discussion & Self Analysis 11 Traits leadership 11 Strengths of Trait Theory: 11 Limitations of Trait Theory 11 Implications of trait theory in my job roles: 11 Findings in relation to my practice as a manager/leader: 11 Situation leadership 12 Strength of Situation leadership: 12 Weakness 12 Findings in relation to my practice as a manager/leader: 12 Authentic leadership 12 Strength 12 Weakness 12 Implications in my jobs roles: 13 Findings in relation to my practice as a manager/leader: 13 Self Analysis through leadership Tools –My Methodology 13 The Johari Window 13 Findings in relation to my practice as a manager/leader: 13 Belbin's Team...
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...Financial Managers and Quality Initiatives in Health Care Post University Tina M Dixons Abstract This paper will discuss the importance of why financial manager should be concerned with quality initiatives in the health care setting. The topic will describe why quality initiatives are a key role in the financial success and failures in healthcare. Delivery of healthcare is synonymous with finance and the task related to quality improvement and quality initiatives that support accuracy in documentation and treatment. There is a strong correlation between providers and finance. Key words: Finance, Quality initiatives, Providers, Patient care. Financial Managers and Quality Initiatives It is clear that if good quality of services, successful outcomes and customer satisfaction are presented in a healthcare setting, then the financial stability may sustain. As financial managers collaborate to achieve health care quality, they know that there are several variable factors that must manifest in order to sustain and earn profits for their organization. Some variables include reduction in medical error, appropriate diagnostics, medical analysis, education programs, staff training, prevention, primary care, financial reimbursements, technological advancements and minimizing waste. Error and Accuracy Medscape reported that “Eight years ago, the Institute of Medicine's (IOM) report To Err is Human revealed that between 44,000 and 98,000 Americans...
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...management is evaluated like a most importance role in organisation. HRM is on managing within the employer- employee relationship. Especially, it involves the productive use of people in achieving the organisation’s strategic business objectives and the satisfaction of individual employee needs. HRM seeks to strategically integrate the interests of an organisation and its employee. It also is a major contributor to the success of an enterprise because it is in a key position to affect customers, business result and ultimately shareholder value. The HR manager, as with another functional manager in marketing, production or finance is responsible for performance. The position exists foremost to help achieve the strategic business of organisation. The HRM has to become more business oriented and strategically focused and they can identify them by some keys role such as strategic partner. The HR manager has the full understanding of strategy and they have the ability to translate it into action. After come to grip with the organisation, finances, people, products and services, customers and its business environment. The HR manager has to demonstrate it the company or organisation how HRM improves business performance and reduces cost as much as possible. For example: buying new machines, cutting down on redundant sectors or training employers and employees to fit with the organisaiton’s strategy. As well as, showing how HRM can helps line managers to better achieve their performance...
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...Currently More than 200000 employees are working for the Sainsbury’s. What makes it a great company is its openness and willingness to learn and improve, which is the hall mark of a successful business. Management:- * Griffin.Ricky W( the man1999)defines the management as a” set of activities(including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources ( human, financial, physical, and information) with the aim of achieving the generational goals in an efficient and effective manner”. On interviewing the manager on Knightsbridge Sainsbury’s local, we got results for the process of management which carries out in that branch. The role of manager in that particular store was very important as it is situated in the heart of London. * Activities of manager’s role:- During the interview when manager was asked about the role and responsibilities for finance, people, resources and materials. The answer was surprising. He used a mixture or all approaches including classical, human relations, system perspective. The reason for using the mixture was the complexity in organizations of modern time. However for the employees, human relation approach and for the resources scientific approach was used. * People:- When we talk about people, it means the employees, the costumers, and the suppliers. When a question was asked about the way to deal with them, the answer was, “In Scientific Way”. All the employees are well trained...
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...MEMO To: CEO From: Accounting Manager Date: February 19, 2013 Re: Need for internal managerial accountant Dear Chief Executive Officer, This is a memo that will state the reasons why and benefits of hiring another managerial accountant. As we all know, the significance of a trustworthy accounting department is essential in any business. Accounting is specifically the most important department of a business for the simple fact that it deals with the company’s money statuses. This includes where a business can and can’t go financially and what it has and has not accomplished in terms of financial objectives. It is essential that a business have a strong internal accounting system because it can mean monetary success or failure. An internal accounting system includes the maintenance of the company’s finances in terms of short as well as long-term goals, strategy formulation for revenue, operational direction and control of the company’s finances, and the organization of resources and assets aligned with the desired budget within the company. All of these duties will be separated and given specifically to the new internal accounting manager. It is desired that a position be made specifically for these duties because of the importance in the company’s finances. One can not get too overwhelmed with other aspects and/or factors within the company to make mistakes or over or under budget the company. There should be a main focus so there are no unanalyzed risks involved. (Wild and...
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...As a branch of finance, managerial finance is concerned with assessing financial techniques used in organizations and public institutions in an effort to determine how they affect both internal and external business processes. In essence, managerial finance mix managerial and elementary corporate financial aspects to better organizations’ operations, minimize loses and implement change. As opposed to the technical financial approach, managerial finance seeks to analyze available financial information or data and then derive their inherent meaning in regard to the long term survival of a business. This paper seeks to explicate the role of managerial finance and their implication to the survival of contemporary business enterprises. Financial statements are instrumental to internal users in that it helps them to make key business decisions. Such users include business owners, employees, managers and other stakeholders with a direct interest in an organization. Performing financial analyses on such statements helps such parties to gain an in depth understanding on their implications to internal decision making processes. On the other hand, external users require financial analysis to make decisions regarding their investments in a given organization. These include the government, banks and other financial partners as well as potential investors. Following the above discussion, governments will always ask for financial statements to evaluate or ascertain how an organization...
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