BSM 600 Study Guide - Final Guide: Trend Analysis, Pest Analysis, Cash Flow

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 600
• Professor: Ranjita Singh

Document Summary

What is the best source of funding based on: cost of capital, supply and demand, market conditions, stage of venture, future needs, timeliness. To obtain large amounts of capital for growth at the lowest possible cost. To commercialize new technologies and advancements for profit. To obtain roi for shareholders and stakeholders. And to do so with the lease amount of pain and resources. Net working capital: the difference between current assets and liabilities; working capital must be managed. Current assets = cash + accounts receivables + inventory. Accounts receivable: represent what credit customers owe the firm. Inventories are the stocks of: raw materials, finished products and, partly finished products. Amount left over after paying off all obligations of the firm. This amount goes to the balance sheet as owner"s equity on the liabilities side. Choosing the sources of long term capital: loaners vs owners. Capital structure: the mix of equity and debt financing a firm uses for financing needs.