Business Finance -I

Syllabus

                                                                                        5T6.1: Business Finance -I

Unit –I 

Business Finance: Meaning, Nature, Significance, Objects and Scope of Business Finance, Functions of Financial Executive in an Organisation. 

 Sources of Business Finance: Long- Medium and Short Term Sources of Finance, Equity, Preference shares, Sweat equity shares, Shares with differential rights, debentures & Bonds .(Theory)

Unit – II

Project Financing: Meaning, Steps involved in Project Financing,      Appraisal of project, Means of  Project finance, Aspect of Project Appraisal. (Theory)

Inventory Management: Need and Cost of Inventory , Economic Order Quantity under constant price and with varying price , Various inventory levels. (Theory & Numericals) 

Leverages: Concept of Leverages, Operating and Financial Leverages. (Theory & Numericals)

Unit – III

Management of Working Capital: Meaning & Concept ,Need or Objects of Working Capital, types, and Advantages of  Working Capital, disadvantages  of Excessive  Working Capital, Determinant’s, assessment  of   Working Capital requirements(Theory & Numericals)

Unit – IV

Debtors Management: Introduction to Debtors Management, Cost of extending credits, Credit / discount policy, Effective cost of bill discounting . (Theory & Numericals)

Creditors Management: Introduction, Cost of Credit, Accruals / expenses payable as source of finance. (Theory & Numericals)

 Venture Capital Financing: Meaning, Methods of Venture Financing, Problem areas facing the Venture Capital Industry. (Theory)