Learning Outcomes

In this free course, you will learn how to:

• Explain the principles of lending in businesses
• Discuss the principles of ‘risk spread’
• State the importance of timely repayment of loans
• State the circumstances that lead to the dissolving of the partnership firm
• Identify the various components of the financial statement
• Discuss the primary purpose of the income statement
• Recall the formulas for calculating quick assets and net working capital
• Discuss the principles of the working capital loan system
• Distinguish between the gross and net operating cycle
• Define the term ‘liquid surplus’ as used in computing working capital