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CHAPTER 4: BUSINESS ADMINISTRATION - Coggle Diagram
CHAPTER 4: BUSINESS ADMINISTRATION
FUNDING THE BUSINESS
WHAT ARE 4 TYPES OF EQUITY CAPITAL? HOW ARE THEY GENERATE?
4 types of equity capital include:
stock exchange
the company are issuing and selling stocks on the listed securities market
unlisted securities market
the company are issuing and selling stocks on the listed securities market
owner's capital
is the money invested by owners of the company
venture capital
is provided by venture firms
WHAT ARE ADVANTAGES AND DISAVANTAGES OF OWNER' CAPITAL OR VENTURE CAPITAL?
owner's capital
Advantage
Disadvantage
is the money invested by owners of the company
Venture capital
Advantages
It is great chance to raise to big fund from the big financial group
The venture firms do not usually interfere in the company operation.
Disavantage
the venture firm demand high profit and fast growth.
is fund provided by venture firms interested in financing high-growth companies
WHAT IS THE GEARING? WHEN IT HIGH OR LOW?
WHAT IS THE LONG-TERM DEBTS? WHAT ARE THEIR ADVANTAGES AND DISAVANTAGES?
MANAGEMENT OF THE WORKING CAPITAL
SETTING THE PRICE
MARKETING
CORPORATE FINANCE
CONCEPT
corporate finance is the term which refers to financial decisions of companies how to best raise and spend funds.
ACTIVITES / FUNTIONS
Set good financial plans
Develop, raise or mobilize sufficient operating budgets.
Promote wise (Effective use of all financial resources available to the company).
Supervise all financial activities(in coordination with other department)
THE TASKS OF CFO
RAISING
INVESTING
PLANING
MONITERING
Objective
Ensure smooth daily operation and future investment plans.
Improve the financial picture.
maximize revenue and profit
minimize cost and risk.
Timely track income and arisen from business dealing.
TWO MAJOR WAYS OF RAISING FUNDS FOR OPERATION
EQUITY FINANCING
: VỐN CHỦ SỞ HỮU
the way companies raise fund by issuing and selling stocks to investors; Least or selling fixed asset; Using retaining earning or mobilizing venture fund.
DEBT FINANCING
: VỐN VAY
Companies can raise liabilities by borrowing from creditors( Bank or financial institution) or trade credit or issuing bond or debenture