Hafsah Class: Lower 6 Subject: Business studies Sources of Finance * Why do businesses need finance? * Types of finance * Internal sources of finance * External sources of finance * Factors to be considered when choosing sources of finance Sources of finance Finance: Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance‚ which affects decisions‚ is the time value of money‚ which states
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o In finance‚ banking refers to the activities of banks and related organizations. Banking organizations include commercial banks‚ central banks‚ investment banks and any other institution that lends money‚ including credit unions and credit card companies. Good dissertation banking topics examine how banks create and maximize wealth through loans and other financial instruments. Examples include loan risk assessment models‚ money creation and fractional reserve banking. Corporate Finance o Corporate
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FINANCE SAMPLE EXAM QUESTIONS These test questions were developed by the MBA Research Center. Items have been randomly selected from the MBA Research Center’s Test-Item Bank and represent a variety of instructional areas. Performance indicators for these test questions are at the prerequisite‚ career-sustaining‚ and specialist levels. A descriptive test key‚ including question sources and answer rationale‚ has been provided. Copyright © 2014 by MBA Research and Curriculum Center®‚ Columbus
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Finance Management Answer 1. Capital Budgeting Capital budgeting (or investment appraisal) is the process of determining the viability to long-term investments on purchase or replacement of property plant and equipment‚ new product line or other projects. Capital budgeting consists of various techniques used by managers such as: 1. Payback Period 2. Discounted Payback Period 3. Net Present Value 4. Accounting Rate of Return 5. Internal Rate of Return 6. Profitability Index
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Sources of finance Some sources of finance are short term and must be paid back within a year. Other sources of finance are long term and can be paid back over many years. Internal sources of finance are funds found inside the business. For example‚ profits can be kept back to finance expansion. Alternatively the business can sell assets that are no longer really needed to free up cash. External sources of finance are found outside the business. For example from creditors or banks. Internal
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Raising Finance Source of finance Description of source of finance Advantages Disadvantrages Personal sources Peronal sources tend to be the first form of finance used by very small firms. And important personal source of finance is the savings that the entrepreneur accumulated before starting up the business. #Savings are a cheap form of finance as they do not involve paying any interest. #Using savings enables the owner to keep control of the business. This is especially valuable to those
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Bachelor of Commerce: Finance & Economics Specialist (Effective 2012/13) 1. Program Overview & Required Courses Overview and Summary •This is a four-year honours program which leads to the Bachelor of Commerce •This Specialist requires 10.0 RSM + 10.0 non-RSM‚ with 13.5 specified FCEs •10 RSM = 4.0 required + 2.0 specified electives + 4.0 unspecified electives •10 non-RSM = 1.0 MAT + 6.5 ECO + 2.5 unspecified FAS electives First-Year Requirements •RSM100Y Introduction to Management
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Anomalies to Efficient Market Hypothesis and the extent to which they can be explained by behavioural finance theories Finance that is based on rational and logical theories‚ such as the capital asset pricing model (CAPM) and the efficient market hypothesis (EMH). These theories assume that people‚ for the most part‚ behave rationally and predictably. The Efficient market hypothesis assumes that financial markets incorporate all public information and assets that share prices reflect all relevant
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for different sources of finance that can help them maintain and develop the businesses. There are various sources of finance that the companies need to consider in particular cases. Each source has it own advantage and disadvantage and different source will be more advantage in different case. Sources of finance are divided into 2 main kinds depend on the length of the sources and the amount of money: Long term and short term sources I. Long term sources of finance: 1. Share
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You will be spending a tremendous amount of time‚ effort‚ and resources completing your course work. To help focus your investment and to assist me in learning more about your interests and motivations‚ I ask you to complete the following questions. Read over the course syllabus first‚ take your time‚ think carefully about your answers‚ and write in complete paragraphs. All responses are confidential. Tell me about yourself 1. Please tell us a bit about yourself (name‚ hometown‚
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