vi Preface
The first edition of this book was published in 1992, and the second edi-
tion in 1997. Both editions, hardback and paperback, have been highly success-
ful and have sold many, many copies. In addition, the book has been translated
into Chinese (Cantonese and Mandarin), French, Indonesian, Portuguese, and
Spanish. We are delighted that so many readers in various countries have found
this book useful. Now, the entire book has been updated for the third edition.
The following new chapters have been added:
- Chapter 1: Using Financial Statements
- Chapter 3: Cost-Volume-Profit Analysis
- Chapter 5: Information Technology and You
- Chapter 6: Forecasts and Budgets
- Chapter 9: The Business Plan
- Chapter 10: Planning Capital Expenditure
- Chapter 17: Profitable Growth by Acquisition
- Chapter 18: Business Valuation
Also, there are eight new authors, substantial revisions of four chapters
and complete updates of all remaining chapters. The book consists of valu-
able, practical how-to-do-it information, applicable to an entire range of busi-
nesses, from the smallest startup to the largest corporations in the world.
Each chapter of the book has been written by an outstanding expert in the
subject matter of that particular chapter. Some of these experts are full-time
practitioners in the real world, and others are part-time consultants who also
serve as business school professors. Most of these professors are on the fac-
ulty of Babson College, which is famous for its major contributions to the
field of entrepreneurship and which, year after year, is at the top of the an-
nual list of leading independent business schools compiled by U.S. News and
World Repor t.
This book can be read, and reread, with a great deal of profit. Also, it can
be kept handy on a nearby shelf in order to pull it down and look up answers to
questions as they occur. Further, this book will help you to work with finance
and accounting professionals on their own turf and in their own jargon. You
will know what questions to ask, and you will better understand the answers
you receive without being confused or intimidated.
Who can benefit from this book? Many different people, such as:
- Managers wishing to improve their business skills.
- Engineers, chemists, scientists and other technical specialists preparing
to take on increased management responsibilities. - People already operating their own businesses, or thinking of doing so.
- Business people in nonfinancial positions who want to be better versed in
financial matters. - BBA or MBA alumni who want a refresher in finance and accounting.