How to Understand Business Finance, Second Edition

Abstract

The modern marketplace is increasingly unpredictable and there is an ever-greater need for non-financial managers to understand the financial and management accounting process. How to Understand Business Finance is not written by an accountant and actually relates to running a business in a real market. It describes a business as it proceeds from initial set-up through its first year of trading, providing a quick course on business finance as it relates to business growth. As well as learning how to understand the balance sheet and profit and loss account, readers will also grasp the principles of: market dynamics, budgeting and forecasting, fixed and variable costs, break-even analysis, the difference between profit and cash, financial ratios for measuring business performance, investment appraisal, stock market ratios, shareholder value, financial measures for improving business performance, and much more.