Peter Norris Lecture Notes
All firms have debt, it is important to bare that in mind. They use other peoples money in order to make more themselves in running the firm.
Musts in running a firm:
- Understand Costs
- Control money flow
- Know what has been spent
- Have a good idea of what is going on in the market.
Data and Finance management flow within firms, cash flow is the most important.
This is significant if you intend on being a freelancer or have your own design firm.
Originally, we depended on trade or barter rather than buying and selling, this was often with food. This developed onto tokens for more local trading and then from tokens to minted coins which we use today.
BASICS OF FINANCE
What you have to give to get something you want
What an item is actually sold for. If you are buying, the cost equals the price. If you are selling, the cost does not necessity equal the price.
Positive difference between cost and price
Negative difference between cost and price
Money coming in
Money going out
Either how much money is owed to you, or how much you owe someone else. The second is usually the case.
How much money you can get or use
We do these basic finances every day, and with companies it is no different. This lecture was very short, due to our assignment hand in and fortunately I knew quite a lot of the basics.