Need for Finance | Sources of Business Finance | A level Business 9609
A Level Business | Alt Academy
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Need for Finance | Sources of Business Finance | A level Business 9609
2 826 просмотров · 2 г. назад
A Level Business | Alt Academy
2,05 тыс. подписчиков
2 826 просмотров · 2 г. назад
All businesses need finance to function, and this lesson will explore that need. This video is part of the chapter on ‘Sources of Business Finance’ and will cover the following areas:
1. Fundamental Role of Finance: Understand how finance serves as the backbone of any business, crucial for both establishment and day-to-day operations.
2. Start-up Capital: Discover the concept of start-up capital and its significance in initiating business activities, such as acquiring assets and conducting essential research.
3. Working Capital: Analyze the concept of working capital and its pivotal role in ensuring continuous operational viability for a business.
4. Capital vs. Revenue Expenditure: Learn the difference between capital expenditure (capex) and revenue expenditure (opex), and how they shape the financial structure of a business.
5. Calculation and Importance of Working Capital: Calculate working capital using the formula: Working Capital = Current Assets - Current Liabilities, and grasp its importance in maintaining liquidity and day-to-day financial health.
This lesson is tailored to CAIE AS Level Business students, and is just what you need to build a solid foundation in the sources of finance.
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