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Knowing the numbers

questions of finance
and performance

Profit is not a proper objective of a business. It is an essential prerequisite
for being in business. Peter Drucker
Few have heard of Fra Luca Pacioli, the inventor of double-entry
bookkeeping; but he has probably had more influence on human life than
has Dante or Michelangelo. Herbert Muller

n Questions that enable the non-specialist to easily understand the
world of finance.

n Questions that build revenues and profits.
n Questions that ensure that financial resources are applied

effectively and frugally.
n Questions that ensure that when you need to spend you spend to

best effect.

What you will gain from this chapter

n Why bean counters actually deliver a vital service to business.
n How to bluff your way in finance.
n How every manager can increase his or her understanding of the key ratios.

Knowing the numbers 129