Finance
Finance
Finance
Associates with the process institutions and instruments that facilitate the
transfer of money.
corporate finance.
> Banks' liabilities are the money they owe to their customers
and others. They include deposits and borrowings from other
sources. Liabilities must be balanced by the bank's assets to
ensure it can fulfill its financial obligations.
>> Banks' liabilities are the debts and obligations they owe to
various parties. These parties include the bank's customers who
have deposited money (such as savings or checking accounts),
as well as other financial institutions or entities from which the
bank has borrowed money. These liabilities need to be balanced
by the assets that the bank holds, which typically include loans
given out to borrowers and other investments. The goal is to
ensure that the bank can meet its financial commitments and
remain financially stable.
Startup:
# This is the initial phase of a business, often founded by one or
a few entrepreneurs.
# Limited resources and small-scale operations are common.
#Focus is on developing a viable product or service, finding
customers, and establishing a market presence.
# Funding may come from personal savings, loans, or early-
stage investors.
Small Business:
# As the startup gains traction, it may evolve into a small
business.
# The company starts to hire more employees and expands its
customer base.
# Business processes become more defined, and initial revenue
streams are established.
# The business may seek additional funding from angel
investors or venture capitalists.
Medium-Sized Business:
# The company continues to grow, and its operations become
more structured.
# The customer base expands, and revenue increases.
# The business may diversify its product or service offerings and
enter new markets.
# Funding may come from venture capital firms or private
equity.
Large Corporation:
# At this stage, the company has become a major corporation
with a significant market presence.
# Operations are well-established, and the company may have
multiple locations or international offices.
# There is a large workforce and various departments or
divisions within the organization.
# The Company may be publicly traded on stock exchanges, and
ownership is spread among shareholders.
# Financing options include issuing bonds or issuing additional
stocks.
Multinational Corporation (MNC):
# Some large corporations expand their operations globally,
becoming multinational corporations.
# They have a presence in multiple countries and cater to diverse
markets.
# MNCs face complex challenges related to international
regulations, cultural differences, and global supply chains.
Solo proprietorship
A sole proprietorship is a simple business structure where a
single individual owns and operates the business. The owner is
personally responsible for all aspects of the business and its
liabilities. It's easy to set up, offers full control, but doesn't
provide liability protection. Income is reported on the owner's
personal tax return. It's a common choice for small businesses
and startups due to its simplicity.
Partnership
Investing Cash Flow: This shows the cash flow resulting from
a company's investments in assets or divestitures of assets. It
includes capital expenditures, acquisitions, and proceeds from
selling assets. Positive investing cash flow may indicate that the
company is investing in its growth and expansion.
Financing Cash Flow: This reflects the cash flow resulting
from the company's financing activities, such as issuing or
repurchasing stock, borrowing, or repaying loans. Positive
financing cash flow could suggest that the company is raising
capital or paying off its debts.
What’s Liquidity?
Liquidity is the ease of converting an asset into cash
quickly without losing its value. It's crucial because it
allows for financial flexibility and the ability to meet
immediate obligations. Liquid assets are easily accessible
and valuable in emergencies or investment opportunities. In
financial markets, liquidity refers to active trading and
smooth transaction execution.
What is free flow of cash?