Understanding the principles of financial management helps all managers, from line supervisors to senior executives, to use this tool more effectively to support the organization’s goals. This course introduces non-financial managers to the principles of financial management. It explores the basic concepts of risk and return and the time value of money.
Non-financial managers who seek an introduction to finance
- recognize the benefits of using financial management to support organizational success.
- match the main financial statements used to report on financial condition with the information they provide.
- apply information from forecasting tools to allocate cash in a hypothetical departmental budget.
- match common forecasting tools with examples of the cash flow and capital needs they help to identify.
- initiate appropriate interactions with financial control systems in a hypothetical business scenario.
- recognize the value of managing financial risk in business.
- analyze a potential business investment to determine which type(s) of financial risk it represents.
- match types of financial risk with examples.
- compare the risks in two hypothetical business situations to determine which situation has the lower potential for risk or the higher potential for gain.
- identify real-world scenarios as examples of the different types of return investment risk.
- recognize the value of utilizing the time value of money concept to support effective financial management.
- calculate the future value of a monetary amount from a given present value in a hypothetical business situation.
- identify the variables that are used to calculate the relationship between the present value and the future value of invested money that is earning compound interest.
- identify the effects of depreciation expense on financial performance.
- decide whether to lease or buy equipment in a hypothetical business situation.
- select examples of factors to consider when making a buy-lease decision.