What is Business Studies...
Business Studies is an academic subject taught in schools and at university level in many countries. Its study combines elements of accountancy, finance, marketing, organizational studies and economics. Business Studies is a broad subject in the Social Sciences, allowing the in-depth study of a range of specialties such as accountancy, finance, organisation, human resources management and marketing
The Cambridge IGCSE Business Studies syllabus develops learners' understanding of business activity in the public and private sectors, and the importance of innovation and change. Learners find out how the major types of business organisation are established, financed and run, and how their activities are regulated. Factors influencing business decision-making are also considered, as are the essential values of cooperation and interdependence.
Learners not only study business concepts and techniques but also enhance related skills such as numeracy and enquiry. The syllabus provides both a foundation for further study at Cambridge International A Level and an ideal preparation for the world of work.
The Cambridge IGCSE Business Studies syllabus develops learners' understanding of business activity in the public and private sectors, and the importance of innovation and change. Learners find out how the major types of business organisation are established, financed and run, and how their activities are regulated. Factors influencing business decision-making are also considered, as are the essential values of cooperation and interdependence.
Learners not only study business concepts and techniques but also enhance related skills such as numeracy and enquiry. The syllabus provides both a foundation for further study at Cambridge International A Level and an ideal preparation for the world of work.
Financial Information and Decisions
Use of Finance in a Business
Capital Expenditure
•Money spent on purchasing fixed assets (buildings, machines, vehicles..) which will last more than one year.
-Long term Finance (2-5 years)
For Example: A new car factory would benefit Honda over many years.
-Long term Finance (2-5 years)
For Example: A new car factory would benefit Honda over many years.
Revenue Expenditure
Money used to cover short term day-to-day expenses and to help generate sales, for example wages, inventory purchases, telephone charges and rent.
Short term Finance (Less than one year)
For example: A bu
Short term Finance (Less than one year)
For example: A bu
Capital is often classified according to how it is used in business.
Main Sources of Finance
Homework: Explain each Source of Finance and their benefits & drawbacks
worksheet_sources_of_business_finance.docx | |
File Size: | 49 kb |
File Type: | docx |
Cash Flow Forecasting and Working Capital
Sample of Cash flow
Key Terms
•Cash- notes and coins available for immediate payment •Liquid Asset- An asset, such as money held in a bank account, that is easily converted into cash. •Liquidity Problem- not having enough liquid assets to convert to cash quickly. •Insolvency- inability to pay short term debts Formula: •Net Cash Flow = Total Cash Inflows – Total Cash Outflows •Closing Balance = Opening Balance +Net Cash Flow |
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Watch Video: Explanation of Cash Flow |
Cash Flow Worksheet: Answer this activity.
cash_flow_activity.pdf | |
File Size: | 65 kb |
File Type: |
Income StatementIncome Statement or profit and loss account, is a formal statement that details the profit a business makes over a particular period (usually a year).
Its is calculated by subtracting the business's revenue expenditure (both cost of sales, expenses and overheads) from its revenue (income). |
Balance Sheet
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders.
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