Business Finance 101

Learning Objectives

• To explore the history of business accounting
• To identify Why businesses fail
• To discovers the two main purposes of business finance and accounting
• To recognize the key principles of business finance and what they mean
• To recall what debits and credits are
• To recognize the three key financial statements for an organisation
• To explore What the Balance Sheet, Income Statement and Cash-flow Statement tells you
• To recognize how to analyze business investments

Course Description

Three are three main reasons for business failure – an under-skilled management team; ineffective marketing; and poor financial management. Every manager, or student of management, requires a good grasp of business finance. This course will help.

Business finance concerns the management of the monetary resources of an organization. There are two aspects to this:

1. Raising the money to invest in the business

2. Managing that investment properly to generate a return

Raising the money is about having an attractive proposition and managing the risk to investors. Managing the investment is about the financial controls and reporting of the business. This course covers the three main financial reports; financial performance indicators; and investment analysis.

This course will give you a good grasp of the key principles and issues in business finance.

Overview

• The History of Business Finance

  2 mins
• Sources of Business Finance

  9 mins
• The Business Finance Equation

  16 mins
• Current Assets and current Liabilities

  28 mins
• The Cashflow Statement Versus the Income Statement

  41 mins
• The Acid Test Ratio

  52 mins
• Net Present Value

  63 mins