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1. OBTAIN FINANCING

MODEL OF THE FIRM. 1. OBTAIN FINANCING. Short term debt Long term debt Stocks. 2. INVEST IN RESOURCES. Current assets Fixed assets. 3. TO RUN OPERATIONS. Revenues Expenses. MODEL OF THE FIRM. 1. OBTAIN FINANCING. Short term debt. Accounts payable Notes payable Accrued expenses.

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1. OBTAIN FINANCING

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  1. MODEL OF THE FIRM 1. OBTAIN FINANCING • Short term debt • Long term debt • Stocks 2. INVEST IN RESOURCES • Current assets • Fixed assets 3. TO RUN OPERATIONS • Revenues • Expenses

  2. MODEL OF THE FIRM 1. OBTAIN FINANCING • Short term debt • Accounts payable • Notes payable • Accrued expenses • Long term debt • Corporate bonds • Stocks • Common stock • Preferred stock NYSE

  3. MODEL OF THE FIRM 2. INVEST IN RESOURCES • Current assets • Cash • Marketable securities • Accounts receivable • Inventories • Fixed assets • Plant and equipment • Accumulated depreciation

  4. MODEL OF THE FIRM 3. TO RUN OPERATIONS • Operating profits • Total sales • Cost of goods sold • Gross margins • Net profits • Selling and admin • Interest expenses • Taxes • Net profit margin

  5. WHAT the firm does: • MODEL OF THE FIRM • OBTAIN FINANCING • 2.INVEST IN RESOURCES • 3. TO RUN OPERATIONS WHY the firm does it: MAXIMIZE SHAREHOLDER WEALTH HOW the firm does it: MINIMIZE RISK / MAXIMIZE RETURNS

  6. MODEL OF THE FIRM 1. OBTAIN FINANCING (source of funds) • Short term debt • Long term debt • Stocks 2. INVEST IN RESOURCES (use of funds) • Current assets • Fixed assets 3. TO RUN OPERATIONS • Revenues • Expenses

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