A business’s finance activities include preparing budgets; doing cash flow analysis; and planning for the expenditure of funds on such assets as plant, equipment, and machinery. These activities all need to be monitored carefully by a financial manager. This activity is important because, without a carefully calculated financial plan and sound financial management, a firm has little chance of survival, regardless of its product or marketing effectiveness.

The goal of this activity is to illustrate how strategic financial planning and careful financial management have helped to keep small organizations like Threadless, an e-commerce company, innovative, and growing.

What was the financial impact of the firm’s decision to switch to printing-on-demand?

It led to increased operating costs.

It eliminated the cost of warehousing inventory.

It took longer to satisfy customer demand, which led to a decline in sales.

It raised the cost of production.

It reduced the cash flow to product innovation.

By the end of 2011, Threadless hired Jason Macatangay as Vice President of Finance. Which of the following descriptions best encapsulates his primary role at the firm?

Manages the accounting of funds and inventory

Analyzes the market expansion and revenue growth plan for the firm

Collaborates with marketing to finance advertising and promotion campaigns

Borrows funds to sustain product innovation and growth

Ensures efficient operation, attainment of goals, and maintenance of trademark creativity