The FundamentalLaws of Business

An understanding of basic financial principles can help you get beyond the “silo” of your own departmental perspective.

by David Stauffer

Why was a publisher willing to pay General Electric chairman Jack Welch an eye-popping $7 million advance for a book about his career? According to Dallas-based management consultant Ram Charan, author of What the CEO Wants You to Know and several other books, the answer has a lot to do with Welch’s ability to distill complexities—to think and talk about his sprawling global conglomerate as if it were a simple street-corner shop. An understanding of a few financial measures coupled with an enterprise-wide perspective, Charan maintains, can help you get a grip on any company, ...

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