Finance in Business

1. Dr. Christopher E. Macabuhay – Business Teacher – Secondary Technical School – Fujairah , United Arab Emirates Finance in Business

2. Business Cost • Different Operating Cost in Operating a Business

3. 1. Salary or Wages

4. Materials

5. Rent

6. Licences

7. Different Cost

8. Fixed Cost

9. Examples of Fixed Cost

10. Examples of Fixed Cost

11. Examples of Fixed Cost

12. Variable Cost

13. Examples of Variable Cost

14. Examples of Variable Cost

15. Examples of Variable Cost

16. Sources of Funds

17. Sources of Funds • Banks

18. Investors/Friends

19. Credit Card Cash Advance

20. Western Banking

21. Western Banking • Standard activities • Large door to an old bank vault. • Banks act as payment agents by conducting checking or current accounts for customers, paying checks drawn by customers on the bank, and collecting checks deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM). • Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending.

22. Western Banking • Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.

23. Western Banking • Channels • Banks offer many different channels to access their banking and other services: • Automated Teller Machines • A branch is a retail location • Call center • Mail: most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statements • Mobile banking is a method of using one's mobile phone to conduct banking transactions • Online banking is a term used for performing transactions, payments etc. over the Internet • Relationship Managers, mostly for private banking or business banking, often visiting customers at their homes or businesses • Telephone banking is a service which allows its customers to perform transactions over the telephone with automated attendant or when requested with telephone operator • Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a video conference enabled bank branch.clarification

24. Bank Channels

25. Bank Channels

26. Bank Channels

27. Bank Channels

28. Bank Channels

29. Bank Channel

30. Islamic Banking

31. Islamic Banking • ) is banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as Riba or usury) for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also Haraam (forbidden). While these principles may have been applied to historical Islamic economies, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community.[1][2]

32. Budget • Definition of Budget

33. Cash Flow

34. Factors Affect the increased and decrease of Profit

35. Profit • “What is profit?”Simply put, profit is what 's left over after you've paid all of your expenses. Some things involved in the basic definition of profit are within your control and some are not. If you want to improve your profit, you should spend time working on the things you can control. • In order to understand profit, you must focus on the four factors that determine profit in a business. • Price - what you charge for the product or service you sell. • Quantity - the volume of products or services that you sell. • Variable costs - the costs that increase or decrease as your sales increase or decrease. • Fixed costs - those costs that do not change with increases or decreases in your sales.

36. Reasons for Profit

37. 1. Increased Sales

38. 2. Reduced Operating Cost

39. 3. Efficient Customer Service

40. Reason for Decrease in Profit

41. Reason for Decrease in Profit

42. Reason For Decrease of Profit

43. Reason for Decrease in Profit

44. Reason for Decrease of profit

45. Practice simple Calculation of Profit

46. Simple Calculation of Profit • Profit π = TR-TC=(Total Revenue - Total Cost)Read more: How to Find or Solve Simple Equation for Profit | eHow.comhttp://www.ehow.com/how_2264636_solve-simple-equation-profit.html#ixzz1oDdruXVm

47. Simple Calculation of Profit • = TR-TVC-TFC=(Total Revenue-Total Variable Cost -Total Fixed Cost)Read more: How to Find or Solve Simple Equation for Profit | eHow.comhttp://www.ehow.com/how_2264636_solve-simple-equation-profit.html#ixzz1oDe87Lgy

48. Review Basic Financial Record

49. Describe reputation on Cost

50. Profit and loss is a measure of business success and failure