The document discusses how business decisions can affect a firm's value. It explains that a firm's value is determined by expected future cash flows. Key business functions that influence cash flows and value include strategic planning, organizational structure, production, marketing, and financial management. The document then discusses how IBM recently made several strategic decisions to increase its value, such as downsizing operations, revising product and pricing strategies, and investing in new opportunities. These decisions helped increase IBM's revenues and earnings while reducing operating expenses from 1992 to 2001.

1. Synthesis of Business Functions

3. Synthesis of Business Functions

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9. Small Business Survey What Are the Major Concerns of Small Businesses?

11. Summary of Key Business Functions Exhibit 20.1

14. Common Sequence of Business Functions Exhibit 20.2

18. Change in IBM’s Revenue, Expenses, and Earnings Exhibit 20.3 Note: Figures are in millions of dollars.

19. Change in IBM’s Liquidity and Efficiency Exhibit 20.4 Note: Figures are in millions of dollars.