Business finance handout

Rating 5.0 (24) Business finance all - Lecture notes 1-10Explain some possible objectives of a businessDifferentiate between profit maximisation and wealth maximisation.

How does a business finance cycle work?

Financing a business will often involve an injection of debt and equity.
This diagram shows the financing cycle, which is not necessarily a journey that will end, and so involves continuous review and reappraisal.
Visit thebusinessfinanceguide.co.uk for a guide to every stage of the finance journey.

Should a business be financed?

Businesses are often started on overdrafts or credit cards, or with help from friends or family or by using the family property as collateral.
But soon after that the business will need to be financed so it can stand on its own two feet if it is to be a sustainably growing proposition.


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