A Financial Model for Business

Understanding how money works within a business is key to managing the business efficiently and effectively. This course, part of the Balance Sheet series, examines the sources and uses of funds of a business and how a simple model can help you understand how operating profit is achieved. Most businesses need long-term finance and have a mixture of sources of funding to support operations. Loan capital, share capital, and retained profits each have their own implications and uses. These uses of funds can be classified as fixed assets and working capital and also play a part in understanding the overall financial model of a business.