business management

The Hardest Ib Subject Combination

ib business management textbook


On the other hand, loss-making companies can have high money inflows within the brief term. If a business doesn’t plan the timing of those payments and receipts fastidiously, it might run out of money although it is working profitably.

Either the business raises fi nance rapidly – such as a financial institution mortgage – or it may be compelled into ‘liquidation’ by its collectors, the fi rms it owes cash to. It is fairly advanced to calculate and to explain – particularly to non-numerate managers!

To give more credit than is received is to extend the need for working capital. To receive more credit than is given is to cut back the necessity for working capital. Working capital is commonly described because the ‘lifeblood’ of a business.