2Lesson ObjectivesDescribe how finance influences business organizations Summarize the importance of cash flow within a business Evaluate ways to improve cash flow within a business
3Key Vocabulary TermsAccountant Cash Flow Cycle Chief Financial Officer Expense Financial Manager Intangible products Net income Product development cycleObsolescence Revenue Tangible products Tax Utility
4EnrichmentComplete 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.
5Unique Financial Needs In what ways are your family’s financial needs unique?How are a business’s needs unique?
6What 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?
7What Makes a Business’ Financial Needs Unique Download- Reading: What Makes a Business’s Financial Needs UniqueWhen complete create two open ended questions that some one who read the reading should be able to answer in a few sentences.
8ECPakRemember ECPak??What are some characteristics?small, rapidly growing manufacturer of MP3 playersWhat are the possible business functions that ECPak Company will need money for?
9ECPakCreate a list of the possible business functions that ECPak will need money forrecord all ideasno negative commentsbuild on the ideas of othersshare the airStart outside the box and try to bring it back inside the box
10ECPak Company Organization AdministrationOperationsLegalAccountingResearchHuman ResourcesMarketingProductionFacilitiesMaintenancePurchasingCustomer ServiceSales
11ECPakNumerous costs associated with running a businessMany companies fail not because they can’t turn a profit, but because they can’t pay their bills in a timely fashionThis is referred to as a cash flow problem.
12Cash 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 experiencingIt 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
14Cash Flow ChallengeEach 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
15Create a poster that illustrates the cash conversion cycle. EnrichmentCreate a poster that illustrates the cash conversion cycle.
16Cash Flow ChallengeThe 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
17Cash FlowMemo 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
18Cash FlowDownload- Example: Memo How does this example meet the requirements for this assignment? What would you improve if this example were a draft you created?
19Business’s Unique Financial Needs How does your understanding of a business’s unique financial needs prepare you for the future?
20EnrichmentResearch 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.
21Cross-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.