Introduction to Finance

Overview/Description
 From the line supervisor to senior managers, everyone involved in the management of an enterprise interacts with the organization's financial system. Knowledge of the organization's financial system is a key management skill for control and direction of resources. This course will introduce the nonfinancial manager to the purpose of financial management systems. It will also introduce basic concepts of risk and return, time value of money, and the relationship between tax laws and business finance.

Target Audience
 Nonfinancial managers at all levels

Expected Duration
2.5 hours

Lesson Objectives:

The Purpose of Financial Management Systems

  • recognize the benefits of financial management systems in supporting organizational success.
  • match forecasting tools with the needs they help identify.
  • match situations with the financial controls they illustrate.
  • identify financial statements used to report financial condition in annual reports.

    • Risk and Return

  • recognize the importance of risk-and-return decisions to the financial health of the organization.
  • match situations with the type of financial risk they represent.
  • identify the major sources of financial risk.
  • rank a series of investments in order of increasing expected return.

    • The Time Value of Money

  • recognize the importance of time-value-of-money concepts in financial management.
  • identify the key information needed to calculate the future value of an investment.
  • identify the present-value formula.
  • match factors affecting discount rates with the corresponding effect.

    • Tax Laws and Business Finance

  • recognize the importance of considering tax law in business financial management.
  • select tax consequences resulting from the corporate form of business organization.
  • select the effects of higher depreciation expense on financial performance.
  • identify tax issues related to lease vs. buy decisions.

    • Course Number: FIN0141