Study Guides (248,280)
Canada (121,450)
Business (1,240)
BU121 (203)

Financing Cont - not on midterm.docx

2 Pages
Unlock Document

Roopa Reddy

Financing Cont’d – - Businesses that show a profit can still go bankrupt o Lack of ‘real’ cash – profit is locked in accounts receivables o Profit doesn’t = cash - Breakeven o Contribution margin – the higher this is the easier it is to reach breakeven (less to sell) – you want to keep your variable costs low o VCRR – Variable cost to …. o They go hand in hand – and equal 100 NOT ON MID-TERM Principle 1 – entrepreneurial finance: - Real human and financial capital must be ‘rented’ from owners Principle 5 - A ventures financial objective is to increase value - Different measures at different stages o Development stages, survival stage, rapid-growth stage - Development and startup issues o Cash burn rate – how quickly a venture uses cash o Liquidity – ability to meet short-term financial loans o Conversion Period – how quickly you convert to cash – capital cycle (industry dependent) - Survival Issues o Leverage – you are borrowing other people’s money to try to make more money – taking on debt to try to get more inventory to be able to supply, etc. o Profitability and Efficiency – how profitable are you? How efficient? Investment returns Financial Ratios - Ratio groupings o Liquidity – ability to meet sh
More Less

Related notes for BU121

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.