The Finance Manual For Non-financial Managers: Become A Confident User Of Financial Information (smarter Solutions: The Finance Pack)

Prelims/The Finance Manual 28/6/02 11:57 am Page i The Finance Manual for Non-Financial Managers Prelims/The Finance Manual 28/6/02 11:57 am Page ii About the Authors PAUL MCKOEN is a Fellow of the Chartered Institute of Management Accountants. After reading a finance degree, he joined Ford Motor Company where he spent eleven years in a variety of roles. Now Finance Director of Vertex, the Business Process Outsourcing company created by United Utilities, he is based in Cheshire. This is his first book and is inspired by all those marketing, operational and engineering managers who have patiently shared their technical expertise in exchange for help with financial issues. L E O G O U G H is a financial journalist. His other books include How the Stock Market Really Works and Offshore Investment. The Institute of Management (IM) is at the forefront of management development and best management practice. The Institute embraces all levels of management from students to chief executives. It provides a unique portfolio of services for all managers, enabling them to develop skills and achieve management excellence. If you would like to hear more about the benefits of membership, please write to Department P, Institute of Management, Cottingham Road, Corby NN17 1TT. This series is commissioned by the Institute of Management Foundation. Prelims/The Finance Manual 28/6/02 11:57 am Page iii SMARTER SOLUTIONS The finance pack The Finance Manual for Non-Financial Managers The power to make confident financial decisions PA U L M c K O E N a n d L E O G O U G H London • New York • Toronto • Sydney • Tokyo • Singapore Madrid • Mexico City • Munich • Paris Prelims/The Finance Manual 28/6/02 11:57 am Page iv PEARSON EDUCATION LIMITED Head Office: Edinburgh Gate Harlow CM20 2JE Tel: +44 (0)1279 623623 Fax: +44 (0)1279 431059 London Office: 128 Long Acre London WC2E 9AN Tel: +44 (0)20 7447 2000 Fax: +44 (0)20 7447 2170 www.business-minds.com First published in Great Britain 1997 © Pearson Education Limited 2000 The right of Paul McKoen and Leo Gough to be identified as Authors of this Work has been asserted by them in accordance with the Copyright, Designs, and Patents Act 1988. ISBN 0 273 64493 9 British Library Cataloguing in Publication Data A CIP catalogue record for this book can be obtained from the British Library. All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1P 0LP. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers. 10 9 8 7 6 5 4 3 Typeset by Northern Phototypesetting Co. Ltd, Bolton Printed and bound in Great Britain by Bookcraft, Midsomer Norton The Publishers’ policy is to use paper manufactured from sustainable forests. P