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How are we doing? <\/strong><\/em> Everybody - managers, short- and long- term lenders, shareholders, suppliers and so on- wants to know about a company's financial performance in terms of its profitability, liquidity, prosperity, and stability.<\/p>\n"},"library":"H5P.Text 1.1","metadata":{"contentType":"Text","license":"U","title":"Finance for Non-Financial Managers, 7th ed."},"subContentId":"a82f4e61-c794-4ac5-8349-58a6448fbcfc"}],"header":"How are we doing?"},{"position":{"x":4.3999999999999995,"y":32.862951220567865},"alwaysFullscreen":false,"content":[{"params":{"text":"

How much cash do we have on hand?<\/strong><\/em> How much cash a company has on hand determines its liquidity and its ability to pay its bills (suppliers, employees, and short term lenders) on time.<\/p>\n"},"library":"H5P.Text 1.1","metadata":{"contentType":"Text","license":"U","title":"Finance for Non-Financial Managers, 7th ed.","licenseExtras":"Adapted from Finance for Non-Financial Managers, by Pierre G. Bergeron, 7th ed."},"subContentId":"a83c2433-e9ed-4bbb-a81e-c8020b979834"}],"header":"How much cash do we have on hand?"},{"position":{"x":90,"y":27.57382379674515},"alwaysFullscreen":false,"content":[{"params":{"text":"

What should we spend our money on?<\/strong><\/em> Money can be spent on a) operating activities, such as salaries, advertising, freight, promotions, and insurance, including current assets, such as inventories and trade receivables; and b) investing activities, that is, non-current assets, such as property, plant, and equipment. <\/p>\n"},"library":"H5P.Text 1.1","metadata":{"contentType":"Text","license":"U","title":"Finance for Non-Financial Managers, 7th ed.","licenseExtras":"Adapted from Finance for Non-Financial Managers, by Pierre G. Bergeron, 7th ed."},"subContentId":"71499369-8e22-413f-b648-74763f8af980"}],"header":"What should we spend our money on?"},{"position":{"x":37.6,"y":11.665999394044322},"alwaysFullscreen":false,"content":[{"params":{"text":"

Where will our funds come from?<\/strong><\/em> Managers have to determine where more cash can be obtained, taking into consideration how much cash it already has. Options include: suppliers, bankers, long-term investors (shareholders), venture capitalists, or mortgage companies? <\/p>\n"},"library":"H5P.Text 1.1","metadata":{"contentType":"Text","license":"U","title":"Finance for Non-Financial Managers, 7th ed.","licenseExtras":"Adapted from Finance for Non-Financial Managers, by Pierre G. Bergeron, 7th ed."},"subContentId":"87456f48-8ef1-4e64-847f-b9d1aca1497a"}],"header":"Where will our funds come from?"},{"position":{"x":92.80000000000001,"y":93.40373961218836},"alwaysFullscreen":false,"content":[{"params":{"text":"

How will our business be protected? <\/strong><\/em> Protecting the investors' interests is central to management's tasks, as they are employed by shareholders. Managers have to reconcile the legal, accounting, and ethical standards with company activities, to properly protect the business. <\/p>\n"},"library":"H5P.Text 1.1","metadata":{"contentType":"Text","license":"U","title":"Finance for Non-Financial Managers, 7th ed.","licenseExtras":"Adapted from Finance for Non-Financial Managers, by Pierre G. Bergeron, 7th ed."},"subContentId":"6d878a7e-4ad7-42f5-ab8f-862f7aeb6322"}],"header":"How will our business be protected?"}],"hotspotNumberLabel":"Hotspot #num","closeButtonLabel":"Close","image":{"path":"images\/image-618d9f93463c2.jpg","mime":"image\/jpeg","copyright":{"license":"PD","title":"Man in Blue Sweater Holding a Book and a Black Framed Eyeglasses","author":"Photo by Anthony Shkraba from Pexels","source":"https:\/\/www.pexels.com\/photo\/man-in-blue-sweater-holding-a-book-and-a-black-framed-eyeglasses-7579363\/","version":"CC PDM"},"width":431,"height":614},"backgroundImageAltText":"Man considering questions at desk"}

Financial Management - 5 important questions

Megan Gibson