Difference between revisions of "M12-S1 - Introduction"
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(Replaced content with "M12-S1 - Introduction Category:finance Category:- Category:M12 Category:Session") Tag: Replaced |
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| − | + | Finance is about two things: | |
| + | # Raising capital | ||
| + | # Investing capital | ||
| + | with the objective of increasing the wealth of the shareholders. The role division can be described as: | ||
| + | Treasurer: | ||
| + | * Cash planning | ||
| + | * Bank relation | ||
| + | * Risk | ||
| + | * Insurance | ||
| + | * Dividend policy | ||
| + | Cares about: | ||
| + | Cash in | ||
| + | Cash out | ||
| + | -> <math>\Delta</math> in cash balance. | ||
| + | |||
| + | Controller: | ||
| + | * Budgeting | ||
| + | * Record keeping | ||
| + | * Auditing | ||
| + | * Taxation | ||
| + | * Salary administration | ||
| + | Cares about: | ||
| + | Revenue - | ||
| + | Costs | ||
| + | -> Profit | ||
| + | |||
| + | How to discriminate different types of business? | ||
| + | {| class="wikitable" | ||
| + | !Business | ||
| + | !Characteristics | ||
| + | !Metric | ||
| + | |- | ||
| + | |Electrical Utility | ||
| + | |Capital intensive | ||
| + | |High Property and Equipment costs | ||
| + | |- | ||
| + | |Trading Company | ||
| + | |Volume driven business | ||
| + | |Low fixed assets, low margins, high inventory turnover | ||
| + | |- | ||
| + | |'Japanese' Company | ||
| + | | | ||
| + | |Long term debt / Owner's equity is the largest of all | ||
| + | |- | ||
| + | |Supermarket | ||
| + | |Very short collection period | ||
| + | |Very low account receivable ,Low margins | ||
| + | |- | ||
| + | |Aero space | ||
| + | |Low turnover, High Inventories | ||
| + | | | ||
| + | |- | ||
| + | |} | ||
[[Category:finance]] | [[Category:finance]] | ||
Latest revision as of 19:24, 27 August 2020
Finance is about two things:
- Raising capital
- Investing capital
with the objective of increasing the wealth of the shareholders. The role division can be described as: Treasurer:
- Cash planning
- Bank relation
- Risk
- Insurance
- Dividend policy
Cares about:
Cash in Cash out
-> in cash balance.
Controller:
- Budgeting
- Record keeping
- Auditing
- Taxation
- Salary administration
Cares about: Revenue - Costs -> Profit
How to discriminate different types of business?
| Business | Characteristics | Metric |
|---|---|---|
| Electrical Utility | Capital intensive | High Property and Equipment costs |
| Trading Company | Volume driven business | Low fixed assets, low margins, high inventory turnover |
| 'Japanese' Company | Long term debt / Owner's equity is the largest of all | |
| Supermarket | Very short collection period | Very low account receivable ,Low margins |
| Aero space | Low turnover, High Inventories |
