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
KEY VOCABULARY TERMS
Accountant
Cash Flow Cycle
Chief Financial Officer
Expense
Financial Manager
Intangible products
Net income
Product development
cycle
Obsolescence
Revenue
Tangible products
Tax
Utility
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 ideas
 no negative comments
 build on the ideas of others
 share the air
 Start outside the box and try to bring it back inside the
box
ECPAK COMPANY ORGANIZATION
Administration
Production
Sales
Operations
Purchasing
Marketing
Human
Resources
Production
Customer
Service
Accounting
Facilities
Maintenance
Legal
Research
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.