THE F

INANCIA

L

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

Accountant

Cash Flow Cycle

Chief Financial Officer

Expense

Financial Manager

Intangible products

Net income

Product development cycle

Obsolescence

Revenue

Tangible products

Tax

Utility

KEY VOCABULARY TERMS

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.

UNIQUE FINANCIAL NEEDS

In what ways are your family’s financial needs unique?

How are a business’s needs unique?

FINANCE

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 ideasno negative commentsbuild on the ideas of othersshare the airStart 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

Production

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

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.