UNIT OUTLINE
Financial Information and Decisions

5.1 Business finance: needs and sources
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Why do business need capital?
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What are the duration of financing needs?
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What are the main sources of capital?
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How to choose methods of finance?

5.2 Cash-flow forecasting and working capital
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What are the importances of cash in business?
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What are examples of cash inflows and cash outflows?
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How to prepare cash flow forecasting?
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What would cause a firm to run short of cashflow?
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How to overcome a short of cashflow?
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What are the importances of working capital?

5.3 Income statements
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What is the importance of income statement?
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What are the components of a balance sheet?
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How to use the income statement?
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What to do to increase gross profit? And increase profit?

5.4 Statement of financial position
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How to prepare the balance sheet?
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What are the important components in the balance sheet?
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How to balance the balance sheet?

5.5 Analysis of accounts
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What are performance and liquidity ratios?
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What are the uses of financial statements?
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What are the limitations of accounts and accounting ratios?
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