BASIC FORMS OF BUSINESS ORGANISATION

1.0 INTRODUCTION There are three main forms of business organizations- the Sole proprietorship, Partnership, and Limited Liability Company. Each of these has its own distinguishing features/characteristics, as well as merits and demerits. 2.0 OBJECTIVES After studying this Unit, you should be able to:  List the three basic forms of business organizations.  Identify their features 3.0…

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THE FINANCE FUNCTIONS

1.0 INTRODUCTION In this unit, you will be introduced to finance functions in the various stages of activities of a business organization. You may recapitulate that in the business cycle figure drawn in Unit 1, you were shown the functional movement of funds/financial activities through investment to cash, production of goods and services, given their…

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SOURCES OF BUSINESS FINANCE

1.0 INTRODUCTION Financial sources or funds available to a business organization could be classified into short-term, medium term, and long-term, or into short-term and long-term. Sources of funds available to business organizations could be classified into two main categories:  Internal  External These categories have different types of sources, that is a firm can generate funds…

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FINANCE AND RELATED DISCIPLINES

1.0INTRODUCTION The subject of finance is not only discussed, but is part of all disciplines and all facets of socio-economic activities of humans. Finance has evolved to assume a very important position in the decisional process of households, businesses, governments and other non-business organisations. No financial decision can be efficiently and effectively implemented without financial…

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FINANCE IN THE FIRM’S ORGANIZATION STRUCTURE

1.0 INTRODUCTION The subject of finance is not only discussed, but is part of all disciplines and all facets of socio-economic activities of humans. Finance has evolved to assume a very important position in the decisional process of households, businesses, governments and other non-business organisations. No financial decision can be efficiently and effectively implemented without…

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SCOPE OF FINANCE

1.0 INTRODUCTION In this unit of the course, we will discuss the scope of finance to be reached, emphasizing on the relevant areas of concern because finance is a wide area of studies with much interrelationship in business. It is part of management. 2.0 OBJECTIVES At the end of this unit, you should be able…

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FINANCIAL PLANNING AND FORECASTING

1.0 INTRODUCTION Planning is a process of achieving specified objectives. Planning involves the selection of objectives and the means of achieving them. It presupposes that alternative procedures for achieving the same objective exist. Planning involves taking decisions in advance on the following:  What should be done? How could it be done?  When should it be…

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MAIN COMPONENTS OF FINANCIAL STATEMENT

There are three main components of financial statement used for financial analysis. They are as follows: Balance Sheet  Income Statement  Cash flow Statement  (a) Balance Sheet Balance sheet shows the present statement of a business. The business as a single entity shows the financial condition of an accounting entity as at a particular point in…

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