Basic business finance

This title introduces you to the exciting and most important world of basic business finance. The text endeavours to answer questions such as: How do I interpret the figures on a balance sheet and an income statement? What is the meaning of the concepts 'capital', 'income' and 'profit'?

How do we know if the business is covering all its costs? What do we mean by the fundamental financial concept 'the time value of money'? The answers to all of these questions will ultimately affect the long-term survival and success of your business. In endeavouring to answer these questions the text covers either chapters, each commencing with learning outcomes to be addressed in that chapter.

The aim of this title is to equip you with the knowledge of basic business finance principles and the skills required to practise these principles in your own business. Basic Business Finance follows an outcomes-based approach and is suitable for use either directly in your business or in any basic course on the principles of business finance.

Each chapter concludes with self-test questions. After studying this title you should be able to - Interpret the financial effects of daily business activities; identify and source the capital requirements for ongoing and new business ventures; undertake break-even analysis in order to ensure the long-term profitability of the enterprise; compile a financial plan in the form of budgets to evaluate whether goals are being achieved; successfully manage cash, credit and inventories; calculate tax liability and apply insurance cover to your enterprise.