Difference between revisions of "M12-S1 - Introduction"

Revision as of 18:38, 27 August 2020

M12-S1 - Introduction

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-Finance is about two things:
+M12-S1 - Introduction
-# 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]]