THINKING BUSINESS & FINANCE

Advantage Of Opportunities To Do Business

August 8th, 2010

Financial management functions related to investment decisions:

- Investment decisions are reflected in the company’s assets, which means that the wealth impact of corporate structure
- Financing and dividend policy decisions reflected in the company the liability side
Conservative financial structure of the rules: 1) the level of fixed assets + inventory should be entirely their own funds. 2) vertical healthy companies should meet their own capital in the foreign capital in most cases (built-in should not exceed the capital itself, its own capital ratio and foreign capital first, 1)

The basic concept of capital (capital)
According to this view:

1. Lawyers, capital is mentioned in the articles of association the number of shares / a work table and its nominal value of the number of good deeds in front, the notary
2. Accountants, is the owner of the equity capital / net assets / equity / net capital Mathematics (owner’s equity = total assets – total liabilities
3. Businessman, is the capital of the total assets owned and operated company
4. Economics, capital is an intangible business assets or liabilities in the balance sheet

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