The Corporation 's Management Role

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The corporation’s management role is to increase the firm’s value to its stockholders. Corporate finance handles the financial issues such as achieving the firm’s goal, how to raise, manage, and invest its monies. Corporate management has become sensitive to the creation of value for businesses due to the shifting from tangible assets to intangible assets. Although the intangible factors that drive value creation differ by firms, some of the major categories include technology, innovation, and employee and customer relations. Creating value helps customers by selling products and services. Value is when a business generates revenue that surpasses expenses. Understanding what creates value will help managers focus capital and talent…show more content…
Cash flow projections predict the working capital needs for future operations. Working capital is determined by current liabilities subtracted by current assets. This is established by the cash coming in and out of operations. Revenue from a firm’s services will be the main source of projected cash inflows from operations. Cash flow enables a business to use capital budgeting methods to decide the feasibility of the capital assets that may need to support future activities. The cash flow projection helps one to decide their future financing needs and ability to meet there long-term debt obligations. Projected earnings and cash flow numbers aren’t always correct but give management an idea of what could be expected from a project or investment. In Deuteronomy 8:12-19 (New Living Translation), people are reminded that their abundance comes from God. God made His people lives comfortable. He provided fertile land for them to use; God also multiplied their gold, silver, and livestock. If an entire community prospered there would be very little concern for charity. The people would have more than enough for everyone. Christians should always want to acknowledge God as their provider. There are three major categories of ratio analysis are profitability, leverage, and liquidity ratios. Profitability ratio analysis calculates how the competitors earn from their sales. Gross profit margin is the most common of the profitability ratio analysis. Gross profit
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