"What Business Managers Really Need to Know About Finance" explains, in clear and concise terms, the three lessons of Finance which business managers need to understand to effectively manage a business. Specifically: The Time Value of Money (Discounted Cash Flow Analysis) This concept is used to analyze the most important decisions managers must make and to determine the value of a business. It also provides managers with practical guidance in terms of how to manage their business in such a way as to increase value for the firm's shareholders. How to Read, Interpret, Analyze and Understand Financial Statements Financial Statements summarize a firm's business transactions and managers must be able to understand them in order to effectively manage a business. Leverage Leverage, the use of debt financing, can have a powerful impact on a firm's bottom line. It can, however, also result in a significant increase in a firm's financial risk. Managers must have an appreciation for the benefits, and risks, of leverage and understand how to determine the level of financial leverage which is right for their firm.