THE FINANCIAL ENVIRONMENT. LESSON OBJECTIVES Describe how finance influences business organizations...
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Transcript of THE FINANCIAL ENVIRONMENT. LESSON OBJECTIVES Describe how finance influences business organizations...
THE F
INANCIA
L
ENVIRONMENT
LESSON OBJECTIVES
Describe how finance influences business organizations
Summarize the importance of cash flow within a business
Evaluate ways to improve cash flow within a business
Accountant
Cash Flow Cycle
Chief Financial Officer
Expense
Financial Manager
Intangible products
Net income
Product development cycle
Obsolescence
Revenue
Tangible products
Tax
Utility
KEY VOCABULARY TERMS
ENRICHMENT
Complete a career study of an accountant, financial manager, chief financial officer (CFO), forensic accountant, auditor, payroll clerk, tax accountant, and financial analyst.
Complete a short oral presentation based on your findings.
UNIQUE FINANCIAL NEEDS
In what ways are your family’s financial needs unique?
How are a business’s needs unique?
FINANCE
What does the term “finance” refer to?
How would you define finance?Why is finance important to a family?
Why is finance important to a business?
WHAT MAKES A BUSINESS’ FINANCIAL NEEDS UNIQUE
Download- Reading: What Makes a Business’s Financial Needs Unique
When complete create two open ended questions that some one who read the reading should be able to answer in a few sentences.
ECPAK
Remember ECPak??What are some characteristics?small, rapidly growing manufacturer of MP3 players
What are the possible business functions that ECPak Company will need money for?
ECPAK
Create a list of the possible business functions that ECPak will need money for
record all ideasno negative commentsbuild on the ideas of othersshare the airStart outside the box and try to bring it back inside the box
ECPAK COMPANY ORGANIZATION
Administration
Operations
Legal
Accounting
Research
Human Resources
Marketing
Production
Facilities
Maintenance
Purchasing
Customer Service
Production
Sales
ECPAK
Numerous costs associated with running a business
Many companies fail not because they can’t turn a profit, but because they can’t pay their bills in a timely fashion
This is referred to as a cash flow problem.
CASH FLOW CHALLENGE
Download- Assignment: The Cash Flow Challenge
You will be supporting Eduardo Cisneros of the ECPak Company as he helps to teach his managers about the cash flow problem that he is experiencing
It will be your job to research the subject of the cash flow cycle (also known as the cash conversion cycle or asset conversion cycle) and present your findings to his staff in the form of a memo
CASH FLOW CHALLENGE
Download- Note-Taking Guide: Cash Flow Cycle
Research the answers online
CASH FLOW CHALLENGE
Each student will now share three things that they have learned about the cash flow cycle
You must prepare for the activity by drafting a written piece that explains the cash flow cycle
ENRICHMENT
Create a poster that illustrates the cash conversion cycle.
CASH FLOW CHALLENGE
The cash flow cycle refers to…
It is important to a business because…
Share your responses with your group members and build with what they wrote
CASH FLOW
Memo writing is an employability skill that you can use in the future, and that the format of a memo follows the general guidelines of business writing
Memos should be concise, easy to read, and communicate company or job objectives
CASH FLOW
Download- Example: Memo
How does this example meet the requirements for this assignment?
What would you improve if this example were a draft you created?
BUSINESS’S UNIQUE FINANCIAL NEEDS
How does your understanding of a business’s unique financial needs prepare you for the future?
ENRICHMENT
Research special bank accounts like Zero Balance Accounts, Sweep Accounts, and other investment accounts as one method of helping to manage the cash flow cycle of a business.
Present your findings to the class.
CROSS-CURRICULAR INTEGRATION
Choose a geographical area to research and have them examine the demographics of that particular location.
Draft a summary explaining the type of product and company that is appropriate for the market location.