Description
FIN-315: Accounting and Financial Concepts of BusinessLearning
Learning Module Outcomes
Upon completion of this learning module, you should be able to:
- Explain the relationship between the CMO and the corporate finance function.
- Illustrate how to apply investment decision rules to the decision-making process.
- Differentiate the cost of different strategies to provide capital.
- Incorporate biblical and ethical principles into the responsibility of the CMO for financial performance.
Introduction and Alignment
In Learning Module: Financial Leadership and Management, you will learn more about the different types of firms and the finance manager’s role in the organization that will give you insight into how marketing managers can effectively interact with the finance team.
You will also be introduced to decision-making rules and explore the calculation and application of Net Present Value and Internal Rate of Return. Both frameworks are supported by the time value of money. The Net Present Value and Internal Rate of Return are used to make decisions between competing projects that might differ in scale or time frame. This module explores how leaders and managers evaluate projects with different resources requirements when resources are limited.
Resources
- Modules:
- Functional Areas of Business
- Sole Proprietorships
- Limited Liability Company (LLC)
- Corporations
- Partnerships
- Net Present Value
- Corporate Governance
- Reporting and Analyzing Equity
- Comparing Public and Private Financing
- Equity Financing
- Securities Markets
- Bible
Learning Module Activity Path: Financial Leadership and Management
Devotional
Proverbs 27: 23-24
Devotional Introduction
Give Careful Attention
As a chief marketing officer (CMO) you will be responsible to make significant financial decision and carry the load, along with your colleagues at the executive level, for the overall health and vitality of the business. The decision rules in Table 5 on page 780 of the textbook serve as an invaluable tool for the CMO. Understanding how to use these techniques in practice will serve you well. One thing is certain, when it comes to making significant financial decisions, you must give careful attention to the details and the results of the analyses.
Giving careful attention is as important for individual decisions as it is for the ongoing financial performance of the business. The CMO, and all employees, need to make decisions that are good for the long-term health of the business. Taking future success for granted is a surefire recipe for disaster.
The book of Proverbs in the Bible speaks to this subject as well. Proverbs 27: 23-24 says, “23Be sure you know the condition of your flocks, give careful attention to your herds; 24 for riches do not endure forever and a crown is not secure for all generations.
King Solomon, the writer of the book of Proverbs, understood that you couldn’t take success for granted. He cautions us to give careful attention.
Upon completion of this assignment, you should be able to:
- Incorporate Biblical and ethical principles into the responsibility of the CMO for financial performance.
Resources
- Website: www.biblestudytools.com
- Textbook: Horngren’s accounting (11th ed.); Fundamentals of corporate finance (3rd ed.)
- Bible
Instructions
- Review Table 5 on page 789 of the textbook.
- Read Proverbs 27: 23-24.
- Questions to consider:
- How does the CMO’s responsibility for financial performance relate to Proverbs 27: 23-24?
- What lessons can marketing executives learn about decision-making and the long-term care of the financial health of the business from Proverbs 27: 23-24?
- Are there areas in your life that need you to give special attention?
Read, review, and check for understanding:
Limited Liability Company (LLC)
Assessment One
