What sources of finance can financial managers of when they want to raise more capital?. They are fixed capital and working capital Fixed capital is used to purchase fixed assets like la
Trang 1Unit 16: Corporate Finance
1 What does the term “corporate finance” refer to?
Corporate finance is a broad term that is used to collectively identyfy the variousfinancial dealings undertaken by a corporation
2 What is one of the main functions of corporate finance?
One of the core function of reponsible corporate finance is to make wise use of thefinancial resources availble to the company
3 What is the ultimate goal of corporate finance?
The ultimate goal of corporate finance is to ensure that the corporation is achievingthe maximum benefit from availble financial resources, while incurring theminimum amount of expenditure
4 What does corporate finance include?
Corporate finance includes planning, raising, investing and monitoring of finance
in order to achieve the financial objectives of the company
5 What sources of finance can financial managers of when they want to raise more capital?
Finance can be collected from many sources like share, debentures, banks,financial institution, creditors
6 How is the capital of a firm basically classified?
They are fixed capital and working capital
Fixed capital is used to purchase fixed assets like land, buildings, machinery.While working capital is used to purchase raw materials It is also to pay day today expenses like salaries, rent, taxes, electricity bill
7 How is fixed capital often used?
Fixed capital is used to purchase fixed assets like land, buildings, machinery
8 How is working capital often used?
Trang 2Working capital is used to purchase raw materials It is also to pay day to dayexpenses like salaries, rent, taxes, electricity bill.
9 What are the tasks of financial managers in planning the finance?
The finance manager plans finance of the company He makes decision onquestions like
- How much finance is required by the company?
- What are the sources of finance?
- How to use the finance profitably?
10 What are the tasks of financial managers in raising the finance?
The finance manager raise finance for the company Finance can be collected frommany sources like share, debentures, banks, financial institution, creditors
11 What are the tasks of financial managers in investing the finance?
The finance manager uses the finance to achieve the objective of the company.There are two types of the corporate finance: fixed capital and working capital.Fixed capital is used to purchase fixed assets like land, buildings, machinery.While working capital is used to purchase raw materials It is also to pay day today expenses like salaries, rent, taxes, electricity bill
12 What are the tasks of financial managers in monitoring the finance?
The finance manager monitor finance of the company
He has to minimize: - the cost of the finance
- the wastage and misuse of the finance
- the risk of investment of finance
He also has to maximum return on the finance
Trang 3UNIT 17
1 What’s gearing?
Gearing is the relationship between equity capital invested in the business and
long- term debt.
2 What are capital resources for companies to raise for their businesses?
The capital resources for companies to raise for their businesses are equityfinancing and debt finaning
A company can increase its equity by issuing new share, using reinvested earnings
or sale assets
A company can raise liabilities by issuing bond, using trade credit or bank loan orbank overdraft
3 What are capital sources debt financing?
Capital sources debt financing are issuing new bond, trade credit, bank loan orbank overdaft
4 What are capital sources equity financing?
Capital sources equity financing are issuing new share, reinvested earning, saleassets
5 What does the high/ low gearing are there?
High gearing: A firm has a larger proportion of debt versus equity
Low gearing: a firm has a smaller proportion of debt versus equity
6 How many forms of equity are there?
There are 4 forms of equity The first form of equity is owner’s capital, the secondform is venture capital, unlisted securities market and the last form is stockexchang
7 What are advantages and disadvantages of owner’s capital?
The advantages of owner’s capital is that in the successful, the owners have a claim
on all the net profit The disadvantage of owner’s capital is that this is the mostexposed form of capital because owner are the last people to receive net profits
Trang 48 What are advantages and disadvantages of venture capital?
The advantages of the venture capital is that doesn’t usually interfere in therunning of the company The disadvantage is that they often demand a much fasterand higher rate of return more than owners do
9 What are advantages and disadvantages of unlisted securities market?
The advantage are that owner don’t lose much control of the company, haveopportunity to raise capital, especially for unlisted company
The disadvantage is that capital financing is limited
10 What are advantages and disadvantages of stock exchang?
The advantages are that it provides long- term opportunity of raising capital andhigh liquidity
The disadvantage are that difficult for unlistef or small company, reducing control
of the original owners
11 What are advantages and disadvantages of long- term loans?
The advantages: can raise capital for investment
The disadvantages: have to secure the debt over assets
12 Is the higher gearing helpful or harmful to companies?
In times of prosperity, a high gearing will give the owners a much better return asnet profit will be a much higher percentage of equity on the payments on the long-term debt
In harder times, the owner’s gearing will drop dramatically as interest paymentsoak up most of the company's profit
Trang 5Unit 18
1 How is profitability determined?
Profitability is determine in part by the way in which a company manages itsworking capital
2 What is one of the principal functions of financial management in managing working capital?
One of the principal functions of financial management in managing workingcapital is to provide the correct amount of working capital at the right time and inthe right place to realize the greatest return on investment
3 How can working capital initially broken down?/ How many types of working capital are there?
There are 2 types of working capital There are permanent and temporary:
- Permanent working capital is tied up in keeping the business flowing throughoutthe year
- Temporary working capital is needed from time to time to take account ofseasonal, cyclical or unexpected fluctuation in the business
4 What is permanent working capital used for?
Permanent working capital is tied up in keeping the business flowing throughoutthe year
5 What is temporary working capital used for?
Temporary working capital is needed from time to time to take account of seasonal,cyclical, or unexpected fluctuation in the business
6 Which type is usually for serviced from an overdraft facility?
Type 2 is temporary which is usually serviced from an overdraft facility
7 What are major applications of working capital?
Major applications of working capital are inventories, debtor side and cash
8 What are inventories further divided into?
Trang 6Inventories are further divided into raw materials, work in progress, finishedgoods.
9 What is the role of financial managers in managing inventories?
The role of financial managers in managing inventories is to minimize the quantity
of raw materials, work in progress, and finished goods Avoid the vicious circle inthe business
10 What are debts further divided into?
Debts are further divided into debts due to suppliers and debts due to customers
11 What is the role of financial managers in managing debts?
The role of financial managers in managing debts is to negotiate with suppliers'generous credit terms but offer minimal credit to customers achieve a balance toattract customers, maintain a positive relationship with suppliers, and minimizecash outlay
12 What is cash further divided into?
Cash is further divided into cash for normal requirements and cash for abnormalrequirements
13 What is the role of financial managers in managing cash?
The role of financial managers in managing cash is to ensure that enough cash formeeting the company’s day-to-day debts
14 What is the vicious circle in the business?
The vicious circle in the business includes over-stringent cost control, disruption inproduction, failure to meet customer orders, loss of customer goodwill, and loss ofsale
Trang 7UNIT 19
1 How to distinguish (phân biệt) between selling and marketing?
Marketing understands the market demand and then develops and creates a newproduct to satisfy customers’ needs and wants
Selling is producing the product first and then think about how to sell it on themarket
2 Why should the production department understand the marketing concept?
Once a target market has been identified, a company has to decide what goods andservices to offer
3 What is selling concept?
The selling concept is resisting consumers have to be persuaded by vigoroushard–selling techniques to buy non-essential goods and services Products are soldrather than bought
4 What is marketing concept?
The marketing concept is the producer’s task is to find wants and fill them Theproducer makes products that will be bought
5 What are market opportunities?
Marketing opportunities are profitable possibilities of filling in which unsatisfiedneeds of creating new ones in areas in which the company is likely to enjoy adifferential advantage, due to its distinctive competencies
6 Why must the companies consider the existence of competitors?
Because competitors always have to be identified, monitored, and defeated insearch of loyal customers
7 Why is market research important?
Because minimize the risk of launching a product or service solely based onintuition or guesswork
8 How to conduct a market research?
Trang 8They collect and analyze information about the size of a potential market and theconsumer’s reactions.
9 What is marketing mix?
Marketing mix is all various elements of a marketing program, their integration,and the amount of effort that a company can expend on them in order to influencethe target market
10 How many elements of marketing mix are there?
There are 4 elements of marketing mix: product, price, place, promotion
11 What does product include?
Product includes quality, features (standard and optional), style, brand name, size,packaging, services and guarantee
12 What does place include?
Place includes distribution channels, locations of points of sale, transport,inventory size, etc
13 What does price include?
Price includes the basic list price, discounts, the length of the payment period,possible credit terms, and so on
14 What does promotion include?
Promotion groups together advertising, publicity, sales promotion and personalselling
15 What does producer market include?
Producer market include all the individuals and organizations that acquire goodsand services that are used in the production of other goods, or in the supply ofservices to others
Trang 9UNIT 20
1 How are prices set?
Prices are set by buyers and sellers negotiating with each other
2 Why have non-price factors become relatively important in buyer-choice behavior?
-3 What are common mistakes when pricing?
Company usually make some common mistake in setting the price
+ Price is too cost oriented
+ Price is not revised often enough to capitalize on market changes
+ Price is set independently of the rest of the marketing mix rather than as anintrinsic element of marketing-positioning strategy
+ Price is not varied enough for different product items and market segments
4 How do organizations handle pricing?
The organizations, prices are handled by divisional and product-line managers
5 How do small companies handle pricing?
In small companies, prices are often set by top management rather than by themarketing or sales department
6 How do industries where pricing is a key factor handle pricing?
In industries where pricing is a key factor (aerospace, railroads, oil companies)willoften establish a pricing department to set prices or assist others in determiningappropriate prices
UNIT 21: WHAT IS ACCOUNTING?
1 What is accounting information?
Accounting information is the means by which we measure and communicateeconomic events
2 What is the accounting process?
Trang 10The accounting process produces accounting information used by decision maker
in making economic decisions and taking specific actions
- These actions and decisions result in economic activities that continue the cycle
3 What do you need to understand when using accounting information in making business decisions?
To understand and use accounting information in making economic decisions, youneed to understand the following:
• The nature of economic activities that accounting information describes
• The assumptions and measurement techniques involved in developing accountinginformation
• The information that is most relevant for making various types of decisions
4 What is the input/ output of the accounting process?
- The input of the accounting process is economic activities
- The out put of the accounting process is accounting information
5 How many types of accounting information are there?
There are three types of accounting information: financial accounting, managementaccounting and tax accounting
6 What does financial accounting refer to?
Financial accouting refers to information describing financial resources,obligations of an economic entity and activities
7 What does the term financial position mean?
Financial position is the current balances of the recorded assets, liabilities, andequity of an organization
8 What does the term results of operations mean?
The term “results of operations” describes its financial activities during the year
9 What is the purpose of financial accounting information?
The purpose of financial accounting information is assist investors and creditors indeciding where to place their scarce investment resources
Trang 1110 Who use financial accounting information?
Investors, creditors, accountants, and managers, tax operity (nhà chức trách thuế),employee are users of financial accounting information
11 Why is financial accounting information called “general purpose” accounting information?
Financial accounting information is used for so many different purposes that why itoften is called “general purpose” accounting information
12 Why are financial decisions important?
Financial decisions are important because they determine which companies andindustries will receive the financial resources necessary for growth, and which willnot
13 What does management accounting refer to?
Management accounting involves the development and interpretation ofaccounting information intended specifically to assist management in running thebusiness
14 What is the purpose of management accounting information?
Management accounting information is used in setting the company’s overallgoals, evaluating the performance of departments and individuals, decidingwhether to introduce a new line of products – and in making virtually all types ofmanagerial decisions
15 Who use management accounting information?
A company’s managers and employees use management accounting information
16 What is the most challenging aspect of tax accounting?
The most challenging aspect of tax accounting is not the preparation of an incometax return, but tax planning
17 What is tax planning?
Trang 12Tax planning means anticipating the “tax effects” of business transactions andstructuring these transactions in a manner that will minimize the income taxburden.
Trang 13Unit 22: Financial Statements
1 Why do a businesses need to maintain nancial statements?
All businesses need to maintain financial records in order to find out if they are making a profit.
1 Tại sao tất cả các doanh nghiệp cần duy trì báo cáo tài chính?
Tất cả các doanh nghiệp cần duy trì hồ sơ tài chính để tìm hiểu xem họ có kiếm đượclợi nhuận không
2 How many types of records are there?
There are two types of records: journal and ledger Journals record sales, use of raw material and purchases Ledgers record all the accounts of the company.
2 Có bao nhiêu loại sổ sách?
Có hai loại hồ sơ: sổ nhật ký và sổ cái Sổ nhật ký ghi chép việc bán, sử dụng nguyênvật liệu và mua hàng Sổ cái ghi lại tất cả các tài khoản của công ty
3 What is a journal?
A journal is sometimes called the book of original entry In the journal, bookkeepers record sales, uses of raw materials, and purchases.
3 Sổ nhật ký là gì?
Một sổ nhật ký đôi khi được gọi là cuốn sách của mục gốc Trên sổ nhật ký, kế toán ghi
sổ các khoản bán, sử dụng nguyên vật liệu, và các khoản mua