100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Samenvatting The Basics of financial management, ISBN: 9789001889210 Finance (MAN4) $7.51
Add to cart

Summary

Samenvatting The Basics of financial management, ISBN: 9789001889210 Finance (MAN4)

 11 views  1 purchase
  • Course
  • Institution
  • Book

Summaries of the book The Basics of Financial Management. Chapters 1-9. Very useful if you want to make flashcards!

Preview 4 out of 39  pages

  • No
  • Chapter 1-9
  • January 20, 2023
  • 39
  • 2020/2021
  • Summary
avatar-seller
THE BASICS OF FINANCIAL
MANAGEMENT
4th edition Wim
Koetzier MSc and Rien Brouwers MSc

Chapters 1 to 9

,Table of Contents
Chapter 1...................................................................................................................................................................2
Chapter 2.................................................................................................................................................................11
Chapter 3.................................................................................................................................................................14
Chapter 4.................................................................................................................................................................17
Chapter 5.................................................................................................................................................................19
Chapter 6.................................................................................................................................................................22
Chapter 7.................................................................................................................................................................26
Chapter 8.................................................................................................................................................................30
Chapter 9.................................................................................................................................................................36




1

,CHAPTER 1
Production organizations/ businesses: Manufacture products and services and sell
these to consumers at a certain price.

The economy: Deals with questions connected to ways in which people strive to
optimize their ‘prosperity’: how can the supply of products and services be optimized
using minimum resources.

Economics: Science that studies human behaviour with respect to the striving wealth,
being the optimal provision of goods and services.
 The relationship between consumers and business and the mutual interactions
between business.

Types of economics:

- Microeconomics
- Macroeconomics
- Business economics
Microeconomics: Studies the theory behind markets: How does the price mechanism
work in a particular market.

Macroeconomics: Studies economic problems that affect society as a whole, such as
inflation and unemployment.

Business economics: Discipline in economics that studies economic behaviour in
companies.

Two markets a production organization operates between:

- The supplier market
 Where resources are obtained.
- The retail market
 Where manufactured goods or services are sold
Production: The creation of goods and services to provide human needs.

Capital: The production factor consisting of raw material and fixed assets of a
company.

Value creation: The sales of the produced goods and services need to outweigh the
price paid for the production factors at the suppliers market.

Profit depends on:

- Efficiency
- Effectiveness


2

, Efficiency: Expedience of a production process to produce a certain amount at
minimal cost.

Effectiveness: Focus of the production process on the production of goods and
services that will be in demand by customers.

Profit: Difference between sales revenue or turnover (measure of effectiveness) and
costs (measure of efficiency).

Continuity is an important concern for a company, profit is necessary to assure
continuity.

Mission statement: Where companies outline their targets without addressing their
drive for profit as a prominent factor, instead focusing on environmental issues, job
satisfaction for employees.

Different non-profit organizations:

- Public sector
- Private non-profit business
Public sector: Comprises that state, provinces, municipalities and regional water
authorities. The government provides public good and services. These facilities do
not have market mechanism, but do apply budget mechanism.

Examples of public goods and services:

- Roads
- Protection against sea
- General protection
Market mechanism: Consumers purchase.

Budget mechanism: The government imposes compulsory contributions (tax) and
provides a budget to finance the production of public goods.

Private non-profit business: Comprise a wide variety of organizations from amateur
sports clubs to charitable organizations. Known as a fund-raising institution as it
attempts to raise funds to achieve a worthy social objective.

Organizations in the non-profit sector differ from companies in the following aspects:

- The target set by non-profit organizations is to provide certain (socially
important) facilities. The activities they perform are connected to their social
objectives.
- Non-profit organizations cannot exist by conducting business transactions and
are not economically independent. They depend on ‘gifts’ such as
contributions, subsidies, inheritance.
- The assessment of the effectiveness of non-profit enterprises is much more
difficult than that of a company. Their effectiveness cannot be measured

3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller emilyschut. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.51. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.51  1x  sold
  • (0)
Add to cart
Added