Business Finance - Business Management PDF
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Summary
This document covers important aspects of finance and business. Key concepts include profit versus revenue, capital expenditure, and revenue expenditure. These topics are critical to business survival and growth. Different finance sources are also discussed.
Full Transcript
REVEX-balancing act Str 3...
REVEX-balancing act Str 3 CAPEX vs.. be build up & ↳ if spent too much , long-term capital can't if spent too much , they might not have enough funds to be liquid Inflation - increase in general price level in an economy over a given period and total costs difference between sales revenue Profit positive control risk for owners, maximizes , - difficult to start (costs ( E > - after business paid its dividends to shareholders - share market where stocks of Stock exchange - > - public limited companies are traded from normal Total revenue money generated business operations from sales measure of the money generated Revenue - Interest charged on amount overdrawn finance to type of always match the type of Gold Rule - - assets being financed · · - value that business resources of owns Assets a - Liquidation Share Capital - selling - all the firm's original assets to capital invested cover into the a dest business Year fresh - cateS differences 3 calc o Intangible Assets with the exclusive manufacture sell , between sales revenue and the costs of sales Patents provide investors rights to , use , or account shows the difference Trading - - product invented · they gross profit control the on process - establishes · Goodwill - the value of positive or favorable attributes that relate to a account shows firms profit for the period business Appropriation · Copyright level- · Trademark - recognizable symbol/word useful life allocation of cost of physical assets over it Depreciation a - method Straight-line method Units of production