MGTA01H3 Lecture Notes - Lecture 9: Economic System
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MGTA01H3 Full Course Notes
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For themselves: record assumptions, quantify timelines, identify tasks, and needed. For others: to get help and support especially 7488 Figure out how many people you might need to run your business resources. People and organisations with plans and ideas - but no money. People and organisations with no immediate plans and ideas. Purpose of finance: connect the two groups. Capital (7488) is a factor of production. Economic system needs entrepreneurs to be able to get capital. That is not a role of finance. Long before they sell anything businesses need to spend 7488 A business must spend money before it can make money. Start-up: incorporate, buy furniture, complete research and development hire and train initial staff. Open door to customers: raw material purchases assemble or produce goods initial sales (small volumes) invoicing and collection. You need to get cash in before you can spend on cash out. Decide where and how to get the money.
