Sources of Funding Overview/Description Target Audience Expected Duration Lesson Objectives Course Number Overview/Description
The successful operation of businesses depends on access to capital. Once a business has passed the start-up stage, current income and short-term loans must be used to meet financial needs. Other growth needs may require new infusions of equity capital or long-term debt financing. This course will introduce the most common sources of capital for businesses and the financial performance expectations of investors.
Target Audience
Non-financial managers at all levels
Expected Duration (hours)
2.5
Lesson Objectives Internal Sources of Funding
recognise the benefits of using internal funding sources.
identify the kinds of expenditure normally funded from operating revenue.
select the most appropriate explanation of how depreciation serves as a source of cash flow.
select the expected rate of return for retained earnings used as a funding source.
Share Offerings
recognise the value of public share offerings as a method of raising capital.
identify the key reasons for making a public share offering.
select the major disadvantages of issuing new common shares.
discriminate between the major advantages and disadvantages of issuing preferred shares, from the organisation's perspective.
Borrowing in the Marketplace
recognise the benefits of issuing bonds to raise long-term capital.
identify the main purposes for issuing bonds.
match key factors with their influences on bond interest rates.
match types of bond interest rates with the advantages for the organisation.
Borrowing Short-term
recognise the benefits of borrowing from banks for appropriate capital requirements.
identify the common uses for bank financing.
select the main criteria bankers use when considering a loan for approval.
identify the usual features of commercial paper.
Course Number: FIN8145