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Finance Management for Business Growth

The document discusses different aspects of business finance and accounting including: 1) It outlines different types of finance needed for business activities such as start-up costs, working capital, business expansion, and research expenses. 2) It describes the duration of finance as either short-term (less than 1 year), medium-term (between 1 to 5 years), or long-term (more than 5 years). 3) It distinguishes between capital expenditures for long-term assets and revenue expenditures for ongoing costs.

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Linh Anh Nguyen Ngoc
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9 views5 pages

Finance Management for Business Growth

The document discusses different aspects of business finance and accounting including: 1) It outlines different types of finance needed for business activities such as start-up costs, working capital, business expansion, and research expenses. 2) It describes the duration of finance as either short-term (less than 1 year), medium-term (between 1 to 5 years), or long-term (more than 5 years). 3) It distinguishes between capital expenditures for long-term assets and revenue expenditures for ongoing costs.

Uploaded by

Linh Anh Nguyen Ngoc
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Management and organization

Week 4: Finance & Accounts


I, Finance in business activities
• Setting up a business costs (start-up capital)
• Day-to-day finance – e.g. pay bills (working capital)
• Business expansion finance
• Research expenses (chi phí)

II, Duration of the finance


L o n g – term
S h o r t – te r m M e d iu m – t e r m
f in a n c e
f in a n c e f in a n c e
L e s s th a n 1 B e tw e e n 1 a n d 5 M o r e th a n 5
year y e a rs y e a rs

III, Capital and revenue expenditure


• Capital expenditure: assets purchase that will last more than 1 year
(buildings, machinery, facilities)
• Revenue expenditure: spending on all costs and non-fixed asset
(salaries, materials for stock)

IV, Source of finance


Sources of finance

Internal External

Personal finds Short – Medium – Long –


(only for sole traders) term term term

Profits retained Bank Hire


overdrafts purchase Long – term bank loan

Sale of assets Leasing Debentures


Trade
credit (loan stock / corporate
Efficient Medium – bonds)
management of term bank Sales of shares
working capital Debt loan
factoring (Equity finance)

Grants

Business Angels

* Internal Sources of finance


* (Short – term) External Sources of finance

* (Medium – term) External Sources of finance


* (Long – term) External Sources of finance

V, Making the financing decision


VI, Type of costs

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