BUSINESS FINANCE
Business financing – refers to the methods and sources a company
uses to obtain money to fund its operations, growth, and
investments. This can include (loans, equity investment, venture capital,
or internal funds)
Startup capital – the initial funds required to launch and establish a new
business
Working capital – the funds available for day-to-day operations of a
business
Assets are resources owned or controlled by an individual or business that
are expected to provide future economic benefits
In the context of business finance encompasses the activities and
processes related to managing a company’s financial resources
Accounting
Working capital= current assets- current liabilities
Why business need finance
- Start up and initial investment
- Operational costs
- Growth and expansion
- Working capital management
- Research development (r&D)
- Marketing and sales
- Risk managements
- Debt and equity financing
Short term financing- money needed for a short period of time of up to
one year
Long term financing – money needed for more than one year
Cash- is the actual money that you have in a business and available right
now can be profit can be revenue
, Profit – is the financial gain made after total costs that are deducted from
revenue over a period of time
Formula: profit = revenue- costs
Business financing – refers to the methods and sources a company
uses to obtain money to fund its operations, growth, and
investments. This can include (loans, equity investment, venture capital,
or internal funds)
Startup capital – the initial funds required to launch and establish a new
business
Working capital – the funds available for day-to-day operations of a
business
Assets are resources owned or controlled by an individual or business that
are expected to provide future economic benefits
In the context of business finance encompasses the activities and
processes related to managing a company’s financial resources
Accounting
Working capital= current assets- current liabilities
Why business need finance
- Start up and initial investment
- Operational costs
- Growth and expansion
- Working capital management
- Research development (r&D)
- Marketing and sales
- Risk managements
- Debt and equity financing
Short term financing- money needed for a short period of time of up to
one year
Long term financing – money needed for more than one year
Cash- is the actual money that you have in a business and available right
now can be profit can be revenue
, Profit – is the financial gain made after total costs that are deducted from
revenue over a period of time
Formula: profit = revenue- costs
