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I think folks will be more comfortable handing over vast sums into a business if the people at the helm have significant knowledge of responsibly handling vast
by polymatter 15y ago
I think folks will be more comfortable handing over vast sums into a business if the people at the helm have significant knowledge of responsibly handling vast sums of money.
The MBA is one indication that a person is responsible handling* vast sums of money. Having some actual experience handling vast sums of money is even better. Without that experience though, the MBA is the next best thing.
* By responsible handling of money, I mean things like having made concious decisions about the debt structure of the business, hedging risks (eg. use of forward contracts to hedge currency risks), care between capital and revenue expenditure for tax purposes. To say nothing of the other areas of the MBA to understand how the different functions of the business work together. And if you're building a large business you're going to have different functions of the business so folks feel more comfortable knowing that the guy in charge knows about these different functions and how they operate.
- ThomPete 15y agoI know several MBAs who have no experience handling large sums of money. The whole argument have no basis in reality.
- arethuza 15y agoI know a few people in the asset and treasury management areas and none of them are MBAs - they mostly qualified as accountants or actuaries early in their career (often on top of higher maths degrees) and then go on to become hyper specialized.