Incremental cash flow are significant in business decision

Assignment Help Financial Management

Reference no: EM131825628

As economists, one is trained to view a firm from the point-of-view of profit-maximization, where firms are profit-maximizers, generally equating marginal costs to marginal revenue with respect to production. However, in business, a business manager is trained to evaluate firm performance on the basis of cash flow and the opportunity cost of that cash flow (and hence operating profits). From the point-of-view of a business manager, explain why incremental cash flow are significant in business decision-making and relate this concept to why “cash-non-profits-is king.”

Reference no: EM131825628

Questions Cloud

Believe spends the most money in health care : List and describe two sectors you believe spends the most money in health care?

Which symbols are complex and ambiguous : In the Film Citizen Kane, which symbols' meanings are clear and simple? Which symbols are complex and ambiguous? What gives them this quality?

Find the commonality between the four financial ratios : Find the commonality between the four financial ratios below and explain why they are important to a business manager:

Describe type of business and number and types of employees : Describe the type of business, number and types of employees, such as exempt and non-exempt, and the customer base you will use as your example company.

Incremental cash flow are significant in business decision : Explain why incremental cash flow are significant in business decision-making and relate this concept to why “cash-non-profits-is king.”

What is the correctly valued offer price : The current market value of Calenda Corporation's equity is $120 million. What is the correctly valued offer price?

What are criminal penalties for misappropriation of phi : What are the civil and criminal penalties for misappropriation of personal health information (PHI)? Your response should be 75 words in length.

Expalin the principal functions of AIS : How does, or could, your company use computers to improve operations? What are some other principal functions of AIS? Support your statements.

What is emery inventory : If Cost of Goods Sold run 35% of sales and Inventory turnover is 15, what is Emery’s Inventory?

User Account

All Pages