Lecture Notes
Title: “Revolutionizing Business Finance: An Innovative Approach"
I. Introduction:
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Explore essential business and finance terminology.
II. Administrators:
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Company managers, often the founder in small businesses.
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In larger firms, administrators chosen by shareholders.
III. Self-Financing:
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Use internal funds, reinvesting profits.
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Avoid reliance on external financing.
IV. Capitalization:
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Establish a solid financial foundation.
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Equity capital > Debt capital for well-capitalized companies.
V. Customers:
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Vital for any business.
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Those who purchase goods/services.
VI. Creditors:
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Entities to whom money is owed.
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Function as financial partners.
VII. Debtors:
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Entities owing money to the company.
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Considered financial 'debtors.'
VIII. Bankruptcy:
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Legal process for insolvent companies.
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Occurs when debts can't be repaid.
IX. Government Incentives:
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Government support for business growth.
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Includes incentives like tax breaks.
X. Financial Assistance:
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Programs aiding business activities.
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Support for construction, modernization, etc.
XI. Funds:
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Immediate monetary resources.
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Encompass cash and liquid assets.
XII. Suppliers:
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Business partners providing goods/services.
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Categorized as capital goods, merchandise, or service suppliers.
XIII. Financial Independence:
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Balance between equity and credit capital.
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Affects creditor relationships.
XIV. Conclusion:
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Key terminology for success in the business and financial world.