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What Is Business Mathematics And What Is Its Importance In Modern Business Management?

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Ian John Profile
Ian John answered
Business mathematics is mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis. Mathematics typically used in commerce includes elementary arithmetic, elementary algebra, statistics and probability. Business management can be made more effective in some cases by use of more advanced mathematics such as calculus, matrix algebra and linear programming.

Business Mathematics is very important for modern business management. The forecasting and operating procedures are based primarily on business mathematics. Things such as simple interest and compound interest show a company what it will lose or get over the years if it invests in a particular asset. Business mathematics also helps in cost and price calculations which are the basis of cash inflows and outflows that all companies have to deal with.

In academia, Business Mathematics includes mathematics courses taken at an undergraduate level by business students at University. These courses are slightly less difficult and do not always go into the same depth as other mathematics courses for people majoring in mathematics or science fields. The two most common math courses taken in this form are Business Calculus and Business Statistics. Examples used for problems in these courses are usually real-life problems from the business world to help students gain a more detailed understanding.

An example of the differences in coursework from a business mathematics course and a regular mathematics course would be calculus. In a regular calculus course, students would study trigonometric functions. Business calculus would not study trigonometric functions because it would be time-consuming and useless to most business students, except perhaps economics majors. Economics majors who plan to continue economics in graduate school are strongly encouraged to take regular calculus instead of business calculus, as well as linear algebra and other advanced math courses, especially real analysis.
amber Jhon Profile
amber Jhon answered
Basically Business Mathematics is also known as Commercial or Consumer Math and it usually includes Matrices, Linear programming and probability. In real life these mathematical calculations help in understanding various business problems like calculations of price markups, discounts, payrolls, mortgages, account checking etc. You can understand how to maximize your profits and minimize your costs after knowing linear programming. The questions are given in scenario form and you handle them like real business problems. In this way your quantitative analytical skills are also improved. Business Mathematics is therefore, became an important course of business studies.
Aisha Profile
Aisha answered
Business Mathematics is very important for Modern business management. The forecasting and operating procedures are based primarily on business mathematics. Things such as simple interest, compound interest show a company that what will it lose/get over the years if it invests in a particular asset. Business mathematics also helps in cost and price calculations which are the basis of cash inflows and outflows.

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