Fundamental Concepts and Tools of Business finance

Fundamental Concepts and Tools of Business Finance

​Finance

​acquisition and investment of cash for the purpose of enhancing value and wealth

​categories of finance

​public and

​private

Open Ended

what is your idea of the word business finance?

​business finance.....

​provision of money for commercial use

​

​concerned with the effective use of money

​

​covers the financial management of private profit seeking business (trade, manufacturing, service, utilities)

​Goals of Business Finance

​

​maximizing profit

​

​maximizing profitability

​

​maximizing profit subject to cash constraint

​

​maximizing net present worth

​

​seeking optimum position along risk-return frontier

​Calculation of present worth

​What is the value today of 100,000 to be received next year assuming that the prevailing rate of interest is ten percent (10%) per annum

​100,000

​1.10

​= 90,909.09

Open Ended

what are the common financial statement you are familiar with

Open Ended

difference between current assets and non-current asset

Fundamental Concepts and Tools of Business Finance

groups interested in knowing financial statement

​owners

​management

​creditors

​government

​investors

​