请LZ参考并采纳——————————————————如果需要更多请联系我——————————————————————The main techniques and sectors of the financial industry Main article: Financial servicesAn entity whose income exceeds its expenditure can lend or invest the excess On the other hand， an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims， decreasing its expenses， or increasing its The lender can find a borrower， a financial intermediary， such as a bank or buy notes or bonds in the bond The lender receives interest， the borrower pays a higher interest than the lender receives， and the financial intermediary pockets the A bank aggregates the activities of many borrowers and A bank accepts deposits from lenders， on which it pays the The bank then lends these deposits to Banks allow borrowers and lenders， of different sizes， to coordinate their Banks are thus compensators of money flows in A specific example of corporate finance is the sale of stock by a company to institutional investors like investment banks， who in turn generally sell it to the The stock gives whoever owns it part ownership in that If you buy one share of XYZ Inc， and they have 100 shares outstanding (held by investors)， you are 1/100 owner of that Of course， in return for the stock， the company receives cash， which it uses to expand its business in a process called "equity financing" Equity financing mixed with the sale of bonds (or any other debt financing) is called the company's capital Finance is used by individuals (personal finance)， by governments (public finance)， by businesses (corporate finance)， as well as by a wide variety of organizations including schools and non-profit In general， the goals of each of the above activities are achieved through the use of appropriate financial instruments， with consideration to their institutional Finance is one of the most important aspects of business Without proper financial planning a new enterprise is unlikely to be Managing money (a liquid asset) is essential to ensure a secure future， both for the individual and an Personal finance Main article: Personal financeQuestions in personal finance revolve around * How much money will be needed by an individual (or by a family) at various points in the future? * Where will this money come from ( savings or borrowing)? * How can people protect themselves against unforeseen events in their lives， and risk in financial markets? * How can family assets be best transferred across generations (bequests and inheritance)? * How do taxes (tax subsidies or penalties) affect personal financial decisions? * How does credit affect an individual's financial standing? * How can one plan for a secure financial future in an environment of economic instability?Personal financial decisions may involve paying for education， financing durable goods such as real estate and cars， buying insurance， health and property insurance， investing and saving for Personal financial decisions may also involve paying for a [edit] Corporate finance Main article: Corporate financeManagerial or corporate finance is the task of providing the funds for a corporation's For small business， this is referred to as SME It generally involves balancing risk and profitability， while attempting to maximize an entity's wealth and the value of its Long term funds are provided by ownership equity and long-term credit， often in the form of The balance between these forms the company's capital Short-term funding or working capital is mostly provided by banks extending a line of Another business decision concerning finance is investment， or fund An investment is an acquisition of an asset in the hope that it will maintain or increase its In investment management -- in choosing a portfolio -- one has to decide what， how much and when to To do this， a company must: * Identify relevant objectives and constraints: institution or individual goals， time horizon， risk aversion and tax considerations; * Identify the appropriate strategy: active passive -- hedging strategy * Measure the portfolio performanceFinancial management is duplicate with the financial function of the Accounting However， financial accounting is more concerned with the reporting of historical financial information， while the financial decision is directed toward the future of the [edit] Capital Main article Financial capitalCapital， in the financial sense， is the money which gives the business the power to buy goods to be used in the production of other goods or the offering of a [edit] Sources of capital * Long Term - usually above 7 years o Share Capital o Mortgage o Retained Profit o Venture Capital o Debenture o Sale & Leaseback o Project Finance * Medium Term - usually between 2 and 7 years o Term Loans o Leasing o Hire Purchase * Short Term - usually under 2 years o Bank Overdraft o Trade Credit o Deferred Expenses o Factoring[edit] Capital market * Long-term funds are bought and sold: o Shares o Debentures o Long-term loans， often with a mortgage bond as security o Reserve funds o Euro Bonds[edit] Money market * Financial institutions can use short-term savings to lend out in the form of short-term loans: o Credit on open account o Bank overdraft o Short-term loans o Bills of exchange o Factoring of debtors[edit] Borrowed capitalThis is capital which the business borrows from institutions or people， and includes debentures: * Redeemable debentures * Irredeemable debentures * Debentures to bearer * Hardcore debentures[edit] Own capitalThis is capital that owners of a business (shareholders and partners， for example) provide: * Preference shares/hybrid source of finance o Ordinary preference shares o Cumulative preference shares o Participating preference share * Ordinary shares * Bonus shares * Founders' shares[edit] Differences between shares and debentures * Shareholders are effectively owners; debenture-holders are * Shareholders may vote at AGMs and be elected as directors; debenture-holders may not vote at AGMs or be elected as * Shareholders receive profit in the form of dividends; debenture-holders receive a fixed rate of * If there is no profit， the shareholder does not receive a dividend; interest is paid to debenture-holders regardless of whether or not a profit has been * In case of dissolution of firms debenture holders are paid first as compared to [edit] Fixed capitalThis is money which is used to purchase assets that will remain permanently in the business and help it to make a [edit] Factors determining fixed capital requirements * Nature of business * Size of business * Stage of development * Capital invested by the owners * location of that area[edit] Working capitalThis is money which is used to buy stock， pay expenses and finance [edit] Factors determining working capital requirements * Size of business * Stage of development * Time of production * Rate of stock turnover ratio * Buying and selling terms * Seasonal consumption * Seasonal production[edit] The desirability of budgeting[edit] Capital budgetThis concerns fixed asset requirements for the next five years and how these will be [edit] Cash budgetWorking capital requirements of a business should be monitored at all times to ensure that there are sufficient funds available to meet short-term [edit] Management of current assets[edit] Credit policyCredit gives the customer the opportunity to buy goods and services， and pay for them at a later [edit] Advantages of credit trade * Usually results in more customers than cash * Can charge more for goods to cover the risk of bad * Gain goodwill and loyalty of * People can buy goods and pay for them at a later * Farmers can buy seeds and implements， and pay for them only after the * Stimulates agricultural and industrial production and * Can be used as a promotional * Increase the [edit] Disadvantages of credit trade * Risk of bad * High administration * People can buy more than they can * More working capital * Risk of B[edit] Forms of credit * Suppliers credit: o Credit on ordinary open account o Instalment sales o Bills of exchange o Credit cards * Contractor's credit * Factoring of debtors[edit] Factors which influence credit conditions * Nature of the business's activities * Financial position * Product durability * Length of production process * Competition and competitors' credit conditions * Country's economic position * Conditions at financial institutions * Discount for early payment * Debtor's type of business and financial position[edit] Credit collection[edit] Overdue accounts * Cards arranged alphabetically in card index system * Attach a notice of overdue account to * Send a letter asking for settlement of * Send a second or third letter if first is * Threaten legal [edit] Effective credit control * Increases sales * Reduces bad debts * Increases profits * Builds customer loyalty[edit] Sources of information on creditworthiness * Business references * Bank references * Credit agencies * Chambers of commerce * Employers * Credit application forms[edit] Duties of the credit department * Legal action * Taking necessary steps to ensure settlement of account * Knowing the credit policy and procedures for credit control * Setting credit limits * Ensuring that statements of account are sent out * Ensuring that thorough checks are carried out on credit customers * Keeping records of all amounts owing * Ensuring that debts are settled promptly * Timely reporting to the upper level of management for better [edit] Stock[edit] Purpose of stock control * Ensures that enough stock is on hand to satisfy * Protects and monitors * Safeguards against having to * Allows for control over selling and cost [edit] Stockpiling Main article: Cornering the marketThis refers to the purchase of stock at the right time， at the right price and in the right There are several advantages to the stockpiling， the following are some of the examples: * Losses due to price fluctuations and stock loss kept to a minimum * Ensures that goods reach customers timeously; better service * Saves space and storage cost * Investment of working capital kept to minimum * No loss in production due to delaysThere are several disadvantages to the stockpiling， the following are some of the examples: * Obsolescence * Danger of fire and theft * Initial working capital investment is very large * Losses due to price fluctuation[edit] Influence of stock management on rate of return * Right price * Right quantity * Right quality * Right place * Right time * Right property[edit] Rate of stock turnoverThis refers to the number of times per year that the average level of stock is It may be worked out by dividing the cost price of goods sold by the cost price of the average stock [edit] Determining optimum stock levels * Maximum stock level refers to the maximum stock level that may be maintained to ensure cost * Minimum stock level refers to the point below which the stock level may not * Standard order refers to the amount of stock generally * Order level refers to the stock level which calls for an order to be
