1.2

Projecting Financial Trends

An organization’s finances are closely linked to local and global markets. Therefore, regular monitoring of economic factors, such as employment, inflation, supply and demand, and interest rates are sure to provide beneficial information. Therefore, it is important to understand the impact of economic factors upon an organization’s current and future operations and finances.

Using the module readings, Argosy University online library resources, and the Internet, research two to three articles on the importance of analyzing economic factors for organizations.

Then respond to the following:

• Why should companies pay attention to economic factors when managing the organization’s current and future financial information?
• Consider an organization you are familiar with. Identify the economic factor that has had the most impact on the organization’s earnings in the past 5 years.
• How has this factor impacted the organization and how has the organization dealt with the impact in a positive or negative manner?

Write your initial response in 3–4 paragraphs. Apply APA standards to citation of sources.