What are the Basic Financial Concepts that Business People Must Know?

[Suba]

Understanding the basic concepts of finance is a foundation that is embedded or applied in the world of business and investment. In essence, the basic concepts of finance are factors that influence finance and decision making. Here are some basic financial concepts such as: Working capital, Cost of goods sold, Retirm on investment, Profit margin, Income, costs and expenses, Depreciation and amortization, business credit, Earning before tax. Have you as a business person studied the basic concepts of finance?

 

[Nomad]

These are certainly the ideas that someone interested in starting a business should know. Knowing these financial concepts help in business.

 

[Fidelia]

A business person must know what the variables that make up cost of production. And also know how to determine ideal profit margins.

 

[Springtime]

Business people should understand the concept of profit margin, cost and expenses, cashflow, return on investment, depreciation.

 

[Augusta]

You need to know about the gross and net profit. Which are the profit before deduction of profit and the real profit

 

[King Belieal]

Every business person should know how to determine the cost per unit. That would help him to fix prices.

 

[Kera]

A business person should be able to do cost-benefit analysis. This would help in making financial decisions for the business.