Finance Essay! One page each!timtim12
Answer TWO of the following questions:
- Describe the role of planning as a management function. What would be the consequences if managers did not plan? What is the relationship between the budget and the strategic and operating plans?
- Discuss an organization’s need for working capital. What is it and why is it important? How is it financed? What are the consequences of having too much working capital? / too little?
3. What are the three steps in financial analysis? Why is financial analysis important in management of today’s healthcare organizations? What ratio classifications were discussed in class and in the text? Using a common ratio as an example, discuss the value of ratio analysis and operating indicators.
4. What are the three major reasons that an organization must understand its costs? Describe the activities involved in costs analysis, including cost behavior, cost allocation and breakeven analysis. Is the benefit worth the effort?
- What is capital budgeting? What is its importance to an organization? Describe how capital decisions are made, including the financial evaluation methods discussed in class.
6. What are the major financial statements? What is their purpose? Describe the format and content of each one and how they interrelate. How do the financial statements of investor owned and not-for-profit organizations differ.
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