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As an engineer turned PM who might start a company some day, I've always seen financial literacy as one of my weaknesses. Companies are ultimately judged for th
by okabat 11y ago
As an engineer turned PM who might start a company some day, I've always seen financial literacy as one of my weaknesses. Companies are ultimately judged for their finances. Ignoring this subject is dangerous for a company's prospects, and illegal if it causes you to make misleading statements to investors.
If anybody is looking for further reading on this subject, I enjoyed "Financial Statements" earlier this year(http://www.amazon.com/Financial-Statements-Step---Step-Understanding/dp/1601630239 http://www.amazon.com/Financial-Statements-Step---Step-Under...). Quick and straightforward, it starts with the vocabulary and explains the major financial statements (Income, Cash Flow, Balance). The majority of the book follows a company from inception to dividend disbursement, explaining how various business activities (e.g. signing a lease) hit the financial statements.
- z3t4 11y agoI would recommend a course in micro economics. Learning micro economics really changed how I think about finance. Anyone who plan to start a company some day should know how markets work, marginal return, opportunity cost, sunk cost, etc.