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Business Finance: Chapter 1: The Nature and Aims of Business
Business Finance: Chapter 1: The Nature and Aims of Business
Responsible for bringing into the market wide array of products and
services which were not previously available.
Provide mankind with basic necessities like food and shelter
Profit making has been adapted as a measure to motivate enterprising
persons to engage in business
BUSINESS is…..
Commerce
Industry
Services
Business Finance
CHAPTER 2: ORGANIZING A BUSINESS
First stage in the life cycle of the business
Importance of the organizational stage
Business failures resulted because of defects in planning
a. Bad or improper management practices
b. Poorly focused and executed marketing or inadequate marketing
c. Poor location
d. Failure to invest in new products and efficient technology
e. Lack of adequate financing
WHY PEOPLE ENGAGE IN BUSINESS?
Cost of organization
Working capital
Acquisition of fixed assets
reserves
Sources of Initial Capital