Types of Business

Business, Types of Business

Definition:
Any legal activity to earn profit is called business.

Types of Business:

Sole Proprietorship
Partnership
Company

Sole Proprietorship:

• Only one person owner run the business
• No profit and loss
• all power he have
• he is liabilities
• unlimited

Owner personal assets will be sold if business is going to loss (Limited or Unlimited)

Partnership:

• Capital more
• Profit and loss sharing
• Decision Sharing
• Liabilities (Unlimited) 
• 2-20 Members

Partnership dead or agreement:
All the term and condition are written about partnership in this agreement.

Company:

• Liabilities (limited)
• Owner assets will not be sold

Private Company:
Only the owner of the company can purchase share
Member numbers 2- 50

Public Company:
General public can purchase share
Member number 7- unlimited


FINANCIAL MANAGEMENT
DECISION AREA OF FINANCIAL MANAGEMENT
AGENCY PROBLEM
TYPES OF BUSINESS
FINANCIAL SYSTEM
FINANCIAL INTERMEDIARIES
TYPES OF FINANCIAL MARKETS
TIME VALUE OF MONEY
EXAMPLES AND FORMULA TIME VALUE OF MONEY
CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM
ANNUITY TYPES AND FORMULA
AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE
EFFECTIVE INTEREST RATE WITH EXAMPLE
VALUATION OF LONG TERM SECURITIES (BONDS)
TYPES OF BONDS
BONDS FORMULA,ZERO COUPON PERPETUAL
VALUATION OF LONG TERM SECURITIES (SHARE)
CASH AND MARKETABLE SECURITIES MANAGEMENT
MANAGING CASH INFLOW AND OUTFLOW
SECURITIES MANAGEMENT
SHORT TERM FINANCING
SPONTANEOUS LABILITIES
NEGOTIATED FINANCE
CAPITAL BUDGETING
CAPITAL BUDGETING TECHNIQUE
NET PRESENT VALUE TECHNIQUE
INTERNAL RATE OF RETURN TECHNIQUE
ACCOUNT RECEIVABLE MANAGEMENT
INVENTORY MANAGEMENT
FORCASTING

MBA NOTES FINANCIAL MANAGEMENT