1. CAPITAL Defination Methods of Obtaining Capital
Equtiy financing and debti fincancing
financial statements
The calculation and use of financial ratios
Profits and losses of a business
Rate of stock turnover
factors affecting stock turnover

2. Defination
capital
long-term capital
short-term capital

3. Capital is one of the four factors of production
Capital is one of the four factors of production. Without it no business can survive.
CAPITAL
Long-term capital
Short-term capital

4. Methods of obtaining capital
Eqyity financing methos
self-financing
additional partners
issuing shares
Debt financing methods
borrowing from friends and relatives
trade credit
overdrafts and bank loans
factoring accounts receivables
issuing debentures

5. Financial Statements
Balance sheet
profit and loss account

6. The Calculation and use of financial ratios
Liquidity
Profitability

7. Liquidity Acid-test ratio Working capital Current ratio
= current assets
current liabilities
Acid-test ratio
= current assets - stock
Working capital
= current assets - current liabilities

8. Profitability = sale -cost of goods sold x 100% = net profit x 100%
Gross profit percentage
= sale -cost of goods sold x 100%
sales
Net profit percentage
= net profit x 100%
Rate of return on capital
= net profit x 100%
owners’ capital