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Business Finance. Business Finance Business Finance or Corporate Finance, as it is also known, is the methodology of allocating financial resources with.

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Presentation on theme: "Business Finance. Business Finance Business Finance or Corporate Finance, as it is also known, is the methodology of allocating financial resources with."— Presentation transcript:

1 Business Finance

2 Business Finance Business Finance or Corporate Finance, as it is also known, is the methodology of allocating financial resources with a financial value in an optimal manner, to maximize the wealth of a business enterprise.

3 Business Finance There are 3 major decisions to be made : Capital budgeting : It is budget for major capital, investment or expenditure. It is the planning to determine whether a firm’s long term investments are worth pursuing. Financing : It is the decision regarding which resources or funds are to be brought into the business, from external investors and creditors, to be invested in profitable projects. Dividend policy : Decisions regarding funds to be distributed or returned to equity investors.

4 In terms of ‘acquiring resources’, Business Finance is concerned with issues such as:  How will physical assets be acquired/financed?  Should borrowed funds, rather than internal funds be used?  How long does it take to re-collect money from customers? Business Finance

5 In terms of allocating resources, Business Finance deals with issues such as:  What return must a new operation produce, to make it worthwhile ?  How much must be sold, to break-even and how long will it take to reach that point ?  What is the profitability of each product? Business Finance

6 Apart from being concerned with acquiring and allocating resources, Business Finance also serves as an information system. Financial statements, budgets and forecasts form a part of Business Finance. These give managers the information they need to make better business decisions. Business Finance

7 Key Learning Areas  Financial-Statement analysis  Management of working-capital  Budgeting and budgetary-control  Management information and reporting systems

8 Careers This program is designed for executives working in non-finance areas like: –Marketing –Operations –HRD –IT –Engineering, etc. It has been developed in the context of the increasing strategic focus placed on finance and the need for non- finance executives to get a ‘good feel’ of this vital area.

9 Careers 1.Corporate Manager 2.Finance Manager 3.Audit Manager 4.Manager - General Accounting 5.Tax Analyst 6.Finance Controller 7.Forensics Department/Consultancy 8.Treasury/Risk Department


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