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FINANCE FOR STATEGIC MANAGERS TABLE OF CONTENTS INTRODUCTION 1 TASK 11 AC 1.1 Need of financial information for strategic business managers

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FINANCE FOR STRATEGIC MANAGERS TABLE OF CONTENTS SUMMARY 1 TASK 11 AC 1.1 Need of financial information in business1 AC 1.2 Identification of business risk related to financial decisions 1 AC 1.3 Summary of financial information needed to make strategic business decisions2 TASK 22 AC 2.1 Purpose, structure and content of published accounts2 AC 2.2 Interpretation of financial statements4 AC 2.3 Calculation of financial ratios from the accounts and explanation to support strategic5 business decisions 5 TASK 36 AC 3.1 Short-term

FINANCE FOR STATEGIC MANAGERS TABLE OF CONTENTS INTRODUCTION 1 TASK 11 AC 1.1 Need of financial information for strategic business managers

   Added on 2019-12-04

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FINANCE FOR STRATEGICMANAGERS1 | P a g e
FINANCE FOR STATEGIC MANAGERS TABLE OF CONTENTS INTRODUCTION 1 TASK 11 AC 1.1 Need of financial information for strategic business managers_1
TABLE OF CONTENTSINTRODUCTION......................................................................................................................1TASK 1......................................................................................................................................1AC 1.1 Need of financial information in business............................................................1AC 1.2 Identification of business risk related to financial decisions................................1AC 1.3 Summary of financial information needed to make strategic business decisions2TASK 2......................................................................................................................................2AC 2.1 Purpose, structure and content of published accounts..........................................2AC 2.2 Interpretation of financial statements...................................................................4AC 2.3 Calculation of financial ratios from the accounts and explanation to supportstrategic.............................................................................................................................5business decisions.............................................................................................................5TASK 3......................................................................................................................................6AC 3.1 Distinguishes between short-term and long-term financial requirements for abusiness.............................................................................................................................6AC 3.2 Table comparing short-term and long-term finance sources................................6AC 3.3 Examination of cash flow management techniques and assessing the importance of...........................................................................................................................................7cash flow management......................................................................................................7TASK 4......................................................................................................................................7AC 3.4, 4.1 Different business ownership structures, analysis of corporate governance,legal...................................................................................................................................7and regulatory requirements, roles and responsibility of owners and managers in making..7Decisions...........................................................................................................................7AC 4.2 Evaluation of appraising strategic capital or investment projects........................7CONCLUSION..........................................................................................................................8REFERENCES...........................................................................................................................92 | P a g e
FINANCE FOR STATEGIC MANAGERS TABLE OF CONTENTS INTRODUCTION 1 TASK 11 AC 1.1 Need of financial information for strategic business managers_2
INDEX OF TABLESTable 1: Computation of Pay-back period and accounting rate of return..................................9Table 2: Calculation of Net present value and internal rate of return........................................93 | P a g e
FINANCE FOR STATEGIC MANAGERS TABLE OF CONTENTS INTRODUCTION 1 TASK 11 AC 1.1 Need of financial information for strategic business managers_3
INTRODUCTIONFinance is the soul of every small or large business organization. Every firm'smanagers have the responsibility to acquire required funds on time and manage them in anefficient way. They analyse and interpret the financial business information and take strategicdecisions to achieve long term success. Present project report will discuss the importance offinance and financial management to accomplish business targets. This report will explain theneed of financial information, its analysis, difference between short-term and long-termfinance sources, cash flow management and various techniques to take strategic and qualifiedinvestment decisions. TASK 1AC 1.1 Need of financial information in businessIn every organization, managers collect company's financial data from firm’s preparedaccounts. They gather, analyze and interpret organization’s financial information for theirdecision making process. It provides information about firm's expenditures, revenues,operational performance, assets, liabilities and owner's equity so that managers can assesscompany's performance and take qualified decisions. In the present dynamic and complexbusiness environment, it became necessary to reduce the cost and maximize revenues so as toattain high amount of profitability (Droms and Wright, 2015). Therefore, managers make in-depth analysis of profitability statement and take decisions to enhance the firm’s sales and tocontrol its cost. Thus, organization will be able to enjoy greater amount of profitability.Moreover, managers use various techniques such as comparative financial statements andratio analysis to analyse the organization’s financial performance. They manage company'sliquidity and solvency position to discharge their short-term and long term financialobligations. Furthermore, it assists the managers to take decisions for improving firm’s abilityto use company's assets efficiently. In addition to it, cash flow statement provides informationabout cash sources and its applications. It provides great assistance to manage cash flows andto have adequate surplus availability to support daily operating functions. Thus, it becameclear that prominent and authentic financial information helps to take better quality ofmanagerial decisions and to improve company's performance. It makes the firm able tocompete effectively in the market.AC 1.2 Identification of business risk related to financial decisionsFinance risk refers to the risk associated with the financing operations oforganizations. It is concerned with the firm's ability to generate required cash flows to pay off1 | P a g e
FINANCE FOR STATEGIC MANAGERS TABLE OF CONTENTS INTRODUCTION 1 TASK 11 AC 1.1 Need of financial information for strategic business managers_4

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