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Discussion Post: Core Components of Financing & Banking
Business leaders are responsible for managing many things. The success of the business depends on being as effective and efficient as possible with the resources they use. An important resource to manage is the company financials. Business owners, executives, employees, and even shareholders and potential shareholders need to understand financial management to a greater or lesser degree.
Even from a personal perspective you should begin to expand your understanding of finances and how to make appropriate decisions for your future. Similarly, managers make decisions based on sound financial practices to move the firm forward and/or to meet certain business objectives. In many ways your personal finances mimics that of any enterprise. You want to earn as much money as you can using your income as the base of your finances. You may choose to borrow money for large purchases or even reach out to family members and friends to crowd fund a project. You may want to take advantage of time to start a retirement fund. in order to effectively and efficiently utilize these funds to capitalize on whatever the opportunity might be will require planning and management. The question for you to discuss this week is "Why is financial management important to accomplish a business' objectives?" Present one point and explain why you feel it is important to a business.
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