Finance is vital to an organization1s operations

Apuntes

Finance is vital to an organization's operations This section of the IB Business Management syllabus looks at the finances of business organizations. The finance and accounts section of the course examines aspects of financial control (such as cash flow and budgeting) and financial management accounts (such as the balance sheet, income statement and ratio analysis). All business decisions have two impacts: 1. the impact on human resources (see Unit 2 - HRM), and 2. the impact on the organization's finances. Finance & accounts and conceptual understandings (from the guide): • Change in the business structure can impact a business’ financial resources • Creativity in financial reporting can have diverse impacts in a business • Ethical financial and accounting practices can be a form of sustainable business behaviour • Capital expenditure refers to business spending on non-current assets or capital equipment of a business. • External sources of finance are funds obtained from outside the business, e.g., share capital, loan capital, overdrafts, and trade credit, which can used to finance revenue or capital expenditure. • Finance refers to the various available money that an organizatio...