Here you find notes for the business management IB, focused on finance topic. The notes include diagrams, summaries , formulas. I think these notes will help you to get the better understanding of finance.
Role of finance"
↓expenditure ↓
revenue
Capital
·
finance spenton fixed paymentfor the taily running
assets (land, building) of the business
(wages, raw materials)
External
Share Personal
Interno issue funds
(savings borrowing
↑ regenture
and or from
family/frients)
long-theone
Retained profits some the be toe on
Grants
of
price will
Retalnet profit by governmenti n MAX
and
proportion pait
Int.
↑ sale Ext.
in
Out finitents
Metin-ten leasingserverchase
->
of assets
-> sale a ssets
of
->
Working capital
·
business may seal buildings, machinary
↳
&
to ash
·metium tem loans generate
Depreciation Short-term
Clessthe Bank et
overbot
·trate credit
·
feetfactoring
Shortterm
1. Bankove r traft C. Trade credit 3. Dabtfactoring
-
negative balance on the business bank -
Purchasing firm is
given time to firms keep record of
money owning
account. Bank allows fir m
a to overfrom pay for the items to
received, often them (debtors' book). Can noise finance
its accountup limit(current by selling this book.
an
to
agreed MAX. 3 month s
liabilities)
flexible, can be
pay
+
off whenever
intrates
a re
high
-
Metium term
1. Leasing 2. Medium-term bank loans
-
contractt hatallows a firm renton
to asseti n return
-
these are bank loans with repaymentterms of
for
regular payments. Doesn'tbring money, buta llows between 1-5
years
a firm to
gain expensive
use of assets
Long term
1. Loon Capital 2. Share capital 3. Government grants subsidies
·
borrowed from banks, regullar, interestpayment. value shown company's balance benefits form of
sheet government in the
-
a in
-
a
Interestcan because help
be variable or
fixed, secured unsecured. c apital
permanent the first are cast TAX
or refactions. Granted to
Cstadler firms charge in rates, loans be
must repait.
never
paid back. Has no int.payment. the businesses industry
·is the money raises
company
a from
·Governmentmay often loans to new businesses
selling common or
preferret stock
4. Venture capital 5.
business-angels
~
form private
of
equity and o ffinancing
type thati nvestors provide · known as a
private -
investor. Bangle is a
high-net
businesses believes have
provides financial backing for small startups
to thata re to worth int. who
startup companies and shall
long-term growth potential. UC comes from well off investors, bonts. or
enterpreneurs, typically in exchange for ownershipequity
Can be provided in the
in
technical/managerial expertise.
company.
have
be feeling with risky, B.angels excess funts
·
·would an
org. most
·opposite
o fr a
help, support feeling with person
a
↓ +
·high list loosing
of
·provide an essential
their own money source f inance
of
↓ firms control
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