Problem:
Audio Partners recognizes their need for a written financial policy for the company. The overall purpose of every financial policy is to ensure that the business finances are enough to keep the business running. A financial policy ensures that resources are used efficiently and effectively and that accounting best practices are followed. Additionally, a transparent financial policy can protect employees from any financial risks that might occur without guidelines in place. In your consulting role for Audio Partners, design a financial policy that includes the following components: Budgeting and forecasting: Explain how Audio Partners should create budgets and financial forecasts. Capital structure: Define the optimal mix of debt and equity for the Audio Partners. Cash management: Describe strategies for effective cash flow management. Risk management: Identify financial risks and propose mitigation strategies. Investment decisions: Outline criteria for evaluating and selecting investment opportunities.