The Financial 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

Key Vocabulary Terms Accountant Cash Flow Cycle Chief Financial Officer Expense Financial Manager Intangible products Net income Product development cycle Obsolescence Revenue Tangible products Tax Utility

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. Include- Education requirement, certifications possible, entry-level salary, companies looking for the job, job outlook, local colleges that offer that major, and a fun fact about the position.

Unique Financial Needs In what ways are your family’s financial needs unique? How are a business’s needs unique?

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 ideas no negative comments build on the ideas of others share the air Start 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 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

Create a poster that illustrates the cash conversion 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.