Ah, finance. When anyone thinks of business, one thing immediately pops up in their head – money. Or more importantly (and you’ll realize this in this unit), profit. How will you make money though? Will you invest in project A or in project B? How many units do you have to sell to break-even? How can you maximize profit?

In this unit, you will learn that business is not as simple as taking someone’s money and giving them something in return, nor is it all about quantitative information. There are many factors to consider. What are those factors? Well, read the unit! Topics in this unit will cover many important finance concepts, such as budgeting, costs and revenues, and the all important and mindkilling final accounts.

Don’t worry, we have pictures.

3.1. Sources of Finance
3.2. Costs and Revenues
3.3. Break-even Analysis
3.4. Final Accounts
3.5. Profitability and Liquidity Ratio Analysis
3.6. Efficiency Ratio Analysis (HL only)
3.7. Cash Flow
3.8. Investment Appraisal
3.9. Budgets (HL only)