Why is it important for persons in marketing,accounting,production,and other areas in the firm to understand finance?
A) Funds availability affects the firm's ability to increase inventory,change plant capacity,and so forth.
B) Financial decisions are based on data provided by other functional areas of the firm;thus,it is in the best interests of such areas to provide the most optimistic information possible so that their projects seem most favorable.
C) There is a good chance persons in marketing,accounting,production,and other areas will have to work in the finance area someday if they want to move up the corporate ladder.
D) Payments of salaries and other expenses always pass through the finance area of the firm.
E) All of the above are correct answers.

Question

Quizplus · Accepted Answer

Understanding finance is important for persons in marketing, accounting, production, and other areas in the firm because funds availability affects the firm's ability to increase inventory, change plant capacity, and so forth. By understanding finance, these individuals can make informed decisions that align with the overall financial goals of the organization.

Answer: E
 All of the options listed are correct reasons why understanding finance is important for individuals in various functional areas within a firm. In order to make informed decisions and contribute to the overall success of the organization, individuals in marketing, accounting, production, and other areas need to have a basic understanding of finance and how it impacts their area of specialization.

Why Is It Important for Persons in Marketing,accounting,production,and Other Areas