Financial Objectives and Sources of Finance
Explore the distinction between cash flow and profit, and evaluate internal and external sources of finance. Students will assess when a business should utilise debt versus equity financing.
About This Topic
Explore the distinction between cash flow and profit, and evaluate internal and external sources of finance. Students will assess when a business should utilise debt versus equity financing.
Key Questions
- What is the difference between cash flow and profit?
- When should a business use debt rather than equity?
- What are the internal sources of finance?
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Analysing Financial Performance
Learn to calculate and interpret gross and operating profit margins, as well as conduct break-even analysis. Students will use these financial tools to recommend strategies for improving profitability.
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