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    Finance Basics (HBR 20-Minute Manager Series)
    Finance Basics (HBR 20-Minute Manager Series)
    Finance Basics (HBR 20-Minute Manager Series)
    Ebook100 pages1 hour

    Finance Basics (HBR 20-Minute Manager Series)

    By Harvard Business Review

    4.5/5

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    Read preview

    • Budgeting

    • Financial Statements

    • Finance

    • Personal Finance

    • Investment

    • Corporate Intrigue

    • Financial Thriller

    • Business Drama

    • Love Triangle

    • Forbidden Love

    • Chosen One

    • Rags to Riches

    • Prophecy

    • Secret Heir

    • Wise Mentor

    • Return on Investment

    • Financial Planning

    • Profitability Ratios

    • Financial Health

    • Professional Development

    About this ebook

    Intimidated by corporate finance? The numbers (and the jargon) can feel overwhelming--but you have to understand them to manage effectively. Finance Basics explains the fundamentals simply and quickly, introducing you to key terms and concepts such as:

    • How to navigate financial statements
    • How to weigh costs and benefits
    • What’s involved in budgeting and forecasting
    • How to gauge a company's financial health

    Don't have much time? Get up to speed fast on the most essential business skills with HBR's 20-Minute Manager series. Whether you need a crash course or a brief refresher, each book in the series is a concise, practical primer that will help you brush up on a key management topic. Advice you can quickly read and apply, for ambitious professionals and aspiring executives--from the most trusted source in business. Also available as an ebook.

    LanguageEnglish
    PublisherHarvard Business Review Press
    Release dateFeb 18, 2014
    ISBN9781625270894
    Finance Basics (HBR 20-Minute Manager Series)
    Author

    Harvard Business Review

    Harvard Business Review es sin lugar a dudas la referencia más influyente en el sector editorial en temas de gestión y desarrollo de personas y de organizaciones. En sus publicaciones participan investigadores de reconocimiento y prestigio internacional, lo que hace que su catálogo incluya una gran cantidad de obras que se han convertido en best-sellers traducidos a múltiples idiomas.

    Read more from Harvard Business Review

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    Reviews for Finance Basics (HBR 20-Minute Manager Series)

    4.5/5

    33 ratings7 reviews

    What our readers think

    Readers find this title to be a helpful and well-explained compilation of basic finance concepts. It covers the very basics of finance in a crisp and neat manner, making it easy to understand for people with no background in accounting. The book is considered to be a nice and quick refresh for those in need of understanding the basics of finance.

    What did you think?

    Tap to rate

    Review must be at least 10 words

    • 5/5

      Jan 12, 2019

      Fácil de entender , bien explicando sin tanto concepto que confunde solo lo importante
    • 5/5

      Aug 16, 2019

      I was in need of understanding basics,this book was very crisp and neat loved reading it.
    • 4/5

      Aug 18, 2024

      Best guide for the beginners. It is comprehensive, precise and fit for the elementary students. In a best way authors wrote each concept which shall be understandable to readers.
    • 5/5

      Nov 13, 2023

      Really helpful for the People who has no background related an accounting. as usual HBR make its easier to understand.
    • 5/5

      Mar 13, 2021

      This book covers the very basics of finance; super well explained.
    • 4/5

      Dec 21, 2019

      Nice compilation of basic finance concepts..worth to have for an quick refresh
    • 5/5

      Nov 29, 2021

      good book to read on finance for people with few knowledge

    Book preview

    Finance Basics (HBR 20-Minute Manager Series) - Harvard Business Review

    Finance Basics

    Get up to speed fast on essential business skills. Whether you’re looking for a crash course or a brief refresher, you’ll find just what you need in HBR’s 20-Minute Manager series—foundational reading for ambitious professionals and aspiring executives. Each book is a concise, practical primer, so you’ll have time to brush up on a variety of key management topics.

    Advice you can quickly read and apply, from the most trusted source in business.

    Titles include:

    Creating Business Plans

    http://hbr.org/product/creating-business-plans-20-minute-manager-series/an/16998-PBK-ENG

    Delegating Work

    http://hbr.org/product/delegating-work-20-minute-manager-series/an/16999-PBK-ENG

    Finance Basics

    http://hbr.org/product/finance-basics-20-minute-manager-series/an/16864-PBK-ENG

    Managing Projects

    http://hbr.org/product/managing-projects-20-minute-manager-series/an/16862-PBK-ENG

    Managing Time

    http://hbr.org/product/managing-time-20-minute-manager-series/an/17001-PBK-ENG

    Managing Up

    http://hbr.org/product/managing-up-20-minute-manager-series/an/16863-PBK-ENG

    Presentations

    http://hbr.org/product/presentations-20-minute-manager-series/an/16865-PBK-ENG

    Running Meetings

    http://hbr.org/product/running-meetings-20-minute-manager-series/an/17003-PBK-ENG

    Finance Basics

    Decode the jargon

    Navigate key statements

    Gauge performance

    HARVARD BUSINESS REVIEW PRESS

    Boston, Massachusetts

    Copyright 2014 Harvard Business School Publishing Corporation

    All rights reserved

    Printed in the United States of America

    10 9 8 7 6 5 4 3 2 1

    No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to [email protected], or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

    The web addresses referenced in this book were live and correct at the time of the book’s publication but may be subject to change.

    Library of Congress Cataloging-in-Publication Data

    Finance basics.

             pages cm — (20-minute manager series)

       ISBN 978-1-62527-085-6 (alk. paper)

       1. Corporations—Finance.     2. Managerial accounting.

       HG4026.F487 2014

       658.15—dc23

                                                                    2013039035

    ISBN: 978-1-62527-089-4 (ebook)

    Preview

    No matter where you work in your organization, you’ll do your job better if you understand basic financial concepts. You’ll be a more effective contributor to your company’s efforts to make money and grow.

    This short book explains the basics of finance. Though reading it won’t make you a finance expert, it will help you:

    • Make sense of the three key financial statements.

    • Gauge your company’s financial health.

    • Weigh costs and benefits before committing resources.

    • Consider financial risks when making decisions.

    • Estimate future performance.

    • Track investments against what you’ve budgeted.

    Contents

    Why Understand Finance?

    Navigating the Three Major Financial Statements

    Accounting methods

    The income statement

    The balance sheet

    The cash flow statement

    Using the Statements to Measure Financial Health

    Profitability ratios

    Efficiency ratios

    Liquidity ratios

    Leverage ratios

    Other ways to measure financial health

    Preparing a Budget

    Top-down versus bottom-up budgeting

    Getting started

    Articulating your assumptions

    Quantifying your assumptions

    Calculating Return on Investment

    Costs and benefits

    Payback period

    Net present value and internal rate of return

    Break-even analysis

    Sensitivity analysis

    Evaluating unquantifiable costs and benefits

    Tracking Performance

    Performance of an investment

    Performance of an existing unit

    Forecasts

    Test Yourself

    Answers to Test Questions

    Key Terms

    Learn More

    Sources

    Index

    Finance Basics

    Why Understand Finance?

    Why Understand Finance?

    Finance matters to all companies because they all have to bring in money and spend it in order to do business. On the bringing-in side, smart managers consider questions like these:

    • How much of our money comes from the owners? How much from sales? How much from borrowing?

    • Which of our product lines and regions earn the highest profits? Which ones fail to perform?

    • How long does it take to collect money that customers owe us?

    On the spending side:

    • Are our costs what they should be? Are we spending the right amount on our people and on our physical assets, such as office space and computer equipment?

    • If we can invest in only one of several opportunities for growth, how do we determine which one would generate the most value?

    • If we increased our output by 20%, would we make 20% more money?

    Your company’s finance department (or bookkeeper, if it’s a very small company) produces financial statements, budgets, and forecasts. By understanding these documents, you’ll gain the information you need to ask essential questions and make smart decisions for your division, department, or team.

    By the way, finance uses jargon that may be unfamiliar

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