Into the Unknown
Introduction to Corporate FinanceUniversity of Pennsylvania Corporate finance is complex. If there is a Big Bang Theory for it, I believe the “infinitely hot and dense single point” definitely will be “the time value of money”. This fantastic course, starting from this point, introduces all the basic concepts you need. Inflation, interest rates, time structures,…
Bank Financing Sureties and Guarantors Sureties and guarantors are people who agree to be liable for a debt in the event that the primary debtor refuses to pay, or is unable to pay. In order to convince a bank to lend you some money, you can either gather up some collateral and pledge it as…
Time Value of Money Money received or paid at different time is like different currencies. You can’t add it. Money has a time unit. You must convert them to a common unit to aggregate. Typically we refer to time 0 as today on the time line. Get in the habit of placing cash flows on…
Financial statements are representations or substitute attributes meant to measure attributes of a company. Income Statement Balance sheet is like a photograph taken on a particularly date. Meanwhile income statement depicts what occurred during the period that changed the company’s position from the beginning of the period to its position at the end of the…
Understanding Financial Statements: Company PositionUniversity of Illinois at Urbana-Champaign This is a beginner-level course about financial statements, particularly Balance Sheet. Being able to read and understand financial statements is probably the most essential skill you need to possess, no matter you are a professional investor or even a small business owner. It is amazing that…
Sole Proprietorship and General Partnership These are the 2 most fundamental forms of business entities. They are the only 2 forms of businesses you don’t need to register something with the state. Sole proprietorship One person engaged in business for profit Pro:Easy and cheep to create, no double taxation, owner has complete control Con:Unlimited personal…
The financial statements are a manifestation of accounting, which is what we use to prepare proper financial statements. Accounting is fundamentally about measurement, which is the assigning of numerals or other symbols to present the magnitude of an attribute of a phenomenon. Phenomenon represents an object of interest. Attribute represents the characteristics of the phenomenon….
Corporate strategy is really about 2 things: Corporate headquarters are important because they are the place where corporate strategy is made, but they are ultimately responsible for ensuring corporate advantage. Often time in headquarters you will find corporate management functions like treasury, risk management, taxation, financial reporting, legal counsel, etc. These are often referred to…
Divestiture is exiting from a business, it is the opposite of diversification. Outsourcing is also different from divestiture. Divestiture is when you exit the entire value chain. Outsourcing is when you exit only part of the value chain. Modes of Divestiture There are a few basic modes: Sell-off another company would buy your business,opposite of…
Diversification is entering a new business. When you think about entering a new business, there are 3 type of questions you should ask about diversification: Basic modes If you are thinking about diversification, the main choices are described by the growth tree: The continuum of relationship between firms is used. On one hand is Arm’s…
Market Segments There are different market segments in which fashion and luxury companies complete. The most common criterion to segment a market is price, which leads to the so-called fashion pyramid, which is the reference for everyone in the industry to position its brand. Different brands (even from the same company) occupy different market segments…
Foundations of Everyday LeadershipUniversity of Illinois at Urbana-Champaign To some, leadership is an advantage; meanwhile to some, leadership is a problem. This is a wonderful course elaborates what leadership is all about from theoretical perspective. It guides you to find the secrets why some people is so good at being a leader. To me, this…
What is Leadership Leadership is not just about formal authority, it is really about influencing others. Today’s business environment is fast – things happen very quickly, you have to react quickly. Technology has made it faster to connect to people anywhere in the world, that can bring customers but also competitors. Agility is a social…
What is Corporate Strategy? Corporate strategy is strategy that firms use to compete across multiple businesses. It is relevant for 2 groups of firms: multi-business firms and single-business firms that think about extending into a new business. Having different strategy for different business is not sufficient. A business vary by both corporation and industry, but…
Contracts & Employment LawUniversity of Illinois at Urbana-Champaign This is a very useful course for non-experts, because we all do business every day. The course firstly introduced all elements of a valid contract, a little theoretical, but instructive to help identify the reasons why an agreement is not enforceable. Besides rules from common law, the…