Importance Of Finance And Its Role Essay

1084 Words Nov 22nd, 2015 null Page
The main purpose of business is to make money, and having the necessary finances for operating is essential to a company’s survival. However, companies that generate enough profits simply to cover operating costs cannot exist for long. In order for companies to achieve the years in business like JC Newman Cigar Co., Harris Corporation, Swann’s Furniture Co., and Kansas City Life Insurance, which are privately owned companies celebrating their 120th year anniversary in 2015, they must also generate above-average returns for which a proper state of finances is essential.
Victoria Duff, who has experience as a start-up facilitator, venture catalyst, investor relations manager, and author of the article, Importance of Finance & Its Role in Business, (n/d) states:
Finance is the elixir that assists in the formation of new businesses, and allows businesses to take advantage of opportunities to grow, employ local workers and in turn support other businesses and local, state and federal government through the remittance of income taxes.
(Importance of Finance & Its Role in Business, para. 1).
Therefore, it is important for decision-makers and managers of companies to understand the makeup of the global economy.
Dr. Jack Gordon, the Chief Technical Officer at Strontium Logistics, and author of Main Challenges of Global Financial Management (n/d) outlines a few of the challenges of managing in the global economy. Starting with diverse economic environment:
Operating in a globalized…

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