Business Finance

This PowerPoint, “Business Finance: Comprehensive A-Level Study Guide,” is an extensive Cambridge A-Level Business (9609) resource covering all major aspects of business finance across nine detailed chapters.

It is structured as follows:

1. Understanding Business Finance Fundamentals – Defines finance and explains four primary needs: start-up, expansion, working capital, and special situations.
2. Capital vs Revenue Expenditure – Clarifies the crucial distinction between CAPEX (long-term assets) and REVEX (day-to-day expenses), including impacts on financial statements.
3. Working Capital – Explains the working capital cycle, management strategies (inventory, payables, receivables), and the risks of poor liquidity.
4. Internal Sources of Finance – Covers retained profit, asset sales, sale & leaseback, and owners’ savings, with real examples (e.g., British Airways).
5. Short-term External Sources – Details bank overdrafts, trade credit, and debt factoring, including cost-benefit analysis and strategic use.
6. Long-term External Sources – Explores share issues (ordinary vs preference, IPO, rights issues), advantages, disadvantages, and control dilution.
7. Bank Loans – Breaks down loan types, terms, repayment calculations, security, and real-world scenarios (e.g., café expansion).
8. Debentures – Introduces long-term debt instruments (covered briefly; content appears incomplete).
9. Hire Purchase & Leasing – Introduces asset financing options without large upfront costs (content appears incomplete).

Ideal for Year 13 students and teachers seeking a thorough, example-driven guide to finance topics, with clear explanations, calculations, case studies, and exam-relevant insights. The resource emphasizes real-world application and strategic decision-making in financial management.