Respond to... Explain the various aspects of finance that management must understand.  “Financial management involves planning, forecasting, analysis andevaluation, as well as understanding legal and regulatory issues.” (Byrd, J., Hickman, K., & McPherson, M. 2013) This is important for investors and stockholders to manage. The idea behind financial management is to maximize the returns on an investors investment. Managers must create a balance sheet and decide where in an organization that monies need to be invested. To do this a balance sheet is created and decisions need to be made based off the balance sheet, then finances can be moved around the organization to maximize profits for investors. Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency. A financial manager needs to understand financial markets. An understanding of liquidity, competitiveness and efficiency would be incredibly important for a financial manger to know. Understanding these aspects of finance allows a financial manager to ensure that financial aspects of loans, investments, financial data are in tact and kept track of in an appropriate fashion. Knowing these aspects also helps the manager to know where funds in an organization are, and helps them decide on investments and loans. Interpret the function of the Financial Balance Sheet in assisting in management’s decision making process. “A financial balance sheet is a snapshot of a company’s financial position at a moment in time. The left handed side list assets and the right-handed side list liabilities and owners’ equity” (Byrd, J., Hickman, K., & McPherson, M. 2013) The function of a balance sheet to a manager and their decision making process is important because it allows the manager to anticipate where the finances in the organization are headed. The balance sheet can answer difficult questions for the manager. Overall the balance sheet is something that you can show others why funds are moving around the organization, and why those decisions were made. Discuss what could happen if management does not fulfill responsibilities related to finance. Share a real world example from your own professional experience or from an external source. If a manager fails to fulfill their responsibilities financially there are several things that could go wrong. Debt could be raised, or advertising money could fall flat, also budgets could be exhausted before the end of a quarter or a year which could impact overall sales. What comes to mind in my professional life is working for a specialty pharmacy. We were given a specific sales budget not to exceed per quarter. The financial manager under estimated our budget and we were then told that we were not allowed to continue doing lunches. This caused the business to take a hit because the sales force needed to cancel already scheduled lunches that were designed .

1. Respond to...
Explain the various aspects of finance that management must
understand.
“Financial management involves planning, forecasting, analysis
andevaluation, as well as understanding
legal and regulatory issues.” (Byrd, J., Hickman, K., &
McPherson, M. 2013) This is important for investors and
stockholders to manage. The idea behind financial management
is to maximize the returns on an investors investment. Managers
must create a balance sheet and decide where in an organization
that monies need to be invested. To do this a balance sheet is
created and decisions need to be made based off the balance
sheet, then finances can be moved around the organization to
maximize profits for investors.
Describe why a manager needs to understand the characteristics
and importance of financial markets including their liquidity,
competitiveness, and efficiency.
A financial manager needs to understand financial markets. An
understanding of liquidity, competitiveness and efficiency
would be incredibly important for a financial manger to know.
Understanding these aspects of finance allows a financial
manager to ensure that financial aspects of loans, investments,
financial data are in tact and kept track of in an appropriate
fashion. Knowing these aspects also helps the manager to know
where funds in an organization are, and helps them decide on
investments and loans.

2. Interpret the function of the Financial Balance Sheet in
assisting in management’s decision making process.
“A financial balance sheet is a snapshot of a company’s
financial position at a moment in time. The left handed side list
assets and the right-handed side list liabilities and owners’
equity” (Byrd, J., Hickman, K., & McPherson, M. 2013) The
function of a balance sheet to a manager and their decision
making process is important because it allows the manager to
anticipate where the finances in the organization are headed.
The balance sheet can answer difficult questions for the
manager. Overall the balance sheet is something that you can
show others why funds are moving around the organization, and
why those decisions were made.
Discuss what could happen if management does not fulfill
responsibilities related to finance. Share a real world example
from your own professional experience or from an external
source.
If a manager fails to fulfill their responsibilities financially
there are several things that could go wrong. Debt could be
raised, or advertising money could fall flat, also budgets could
be exhausted before the end of a quarter or a year which could
impact overall sales. What comes to mind in my professional
life is working for a specialty pharmacy. We were given a
specific sales budget not to exceed per quarter. The financial
manager under estimated our budget and we were then told that
we were not allowed to continue doing lunches. This caused the
business to take a hit because the sales force needed to cancel
already scheduled lunches that were designed to drive business.

3. When lunches are canceled another organization will swoop in
and pick up that lunch, therefore stealing revenue for
themselves.
Byrd, J., Hickman, K., & McPherson, M. (2013).
Managerial finance
[Electronic version]. Retrieved from
https://content.ashford.edu/
Respond to...
Examine the role of management as it relates to finance in a
corporation.
Financial management is an essential function of a corporation
that entails the managing of a company’s resources to
effectively meet its overall objectives. Management job within
a corporation is engaging in the financial decision-making
process when it comes to tasks of choosing which investments
to participate in and the source of the capital used for those
investments (Byrd, Hickman & McPherson, 2013). These
sections of the corporation are referred to financial management
and are operated by financial managers. These individuals are
usually accountable for examining various company financial
data to aid in decision-making and development of strategies for
financial improvements.
Explain the various aspects of finance that management must
understand.
There is great significance in understanding finance for
management in order to ensure the financial success of the
corporation. The various factors of finance include planning,

4. forecasting, monitoring and evaluating, and ensuring the
establishment of financial controls. Planning relates to the
analysis of short- and long-term cash flows that go into and out
of the business. However, forecasting is considered one of the
most important aspects of finance. According to Milandru
(2017), “forecasting is constituted by actions undertaken by top
management in view of establishing strategical and tactical
objectives for the organization, identifying economic and
financial resources and the material necessary to obtain them”
(p. 93). The other three factors coincide with each other. The
monitoring, evaluating and controls are the processes put in
place to quantify the method in which the other roles of
management are achieved and compared (Milandru, 2017). The
combination of these functions helps a company financial
operate.
Describe why a manager needs to understand the characteristics
and importance of financial markets including their liquidity,
competitiveness, and efficiency
.
Managers are responsible for the operating functions of the
firm. That includes paying the bills and collecting money owed
to make sure the firm pays its debts and does not lose money.
Additionally, managers must understand the public’s demand
for their companies’ goods and services. Therefore, managers
need to understand the characteristics of the financial market to
include competitiveness, liquidity and efficiency in order to
have the ability to make and support growth through such
actions as, changes, seeking and investing in opportunities, and
obtaining lines of credit.
Interpret the function of the Financial Balance Sheet in
assisting in management’s decision-making process.
There are several reports used to assess the financial health of a

5. firm. The purpose of the financial balance sheet is to function
as a counterpart to the accounting balance sheet focuses on the
tangible and intangible investments, fixed claims, and residual
claims of the corporation (Byrd, Hickman & McPherson, 2013).
Without the balance sheet as an aid in the decision-making
process, firms would not be able to fully assess what money is
coming in and going out to make educated conclusions on
current and future financial opportunities.
Discuss what could happen if management does not fulfill
responsibilities related to finance. Share a real-world example
from your own professional experience or from an external
source.
If managements do not fulfill its roles and responsibilities
related to finance the corporation can suffer financially by
incurring detrimental financial losses. Mismanagement of a
corporation’s finances can lead to inadequate expense and cash
flow control, which would cause financial ruin. Toys ‘R’ Us is
a perfect example of a business that due to poor financial
management went out of business in 2018. The company ended
filing for bankruptcy due to over $5 billion in debt and back
taxes (Verdon, 2019). Toys ‘R’ Us bad financial managing and
decisions ultimately lead to the company closing.
References:
Byrd, J., Hickman, K., & McPherson, M. (2013).
Managerial Finance
[Electronic version]. Retrieved from
https://content.ashford.edu/ (Links to an external site.)
Milandru, M. (2017). Reflections on the Role of Economic and
Financial Management.
Buletin Stiintific, 22
(2), 91-96. https://doi-org.proxy-

6. library.ashford.edu/10.1515/bsaft-2017-0012
Verdon, J. (2019). Lawyers Biggest Winners in Toys ‘R’ Us
Bankruptcy, Top Firm Gets $56 Million.
Forbes.
Retrieved from
https://www.forbes.com/sites/joanverdon/2019/06/11/lawyers-
biggest-winners-in-toys-r-us-bankruptcy-top-firm-gets-56-
million/#2952cb13f107