This chapter provides foundational knowledge of financial information and its importance in business decision-making. Students learn about the role of finance in starting, operating, and growing a business. They explore different sources of finance and understand how businesses choose appropriate funding options.
Next, the chapter introduces basic accounting concepts and financial documents such as income statements and balance sheets. Students learn how these documents help measure performance, manage resources, and inform strategic choices. Understanding financial statements also prepares students to interpret business health and profitability.
Finally, students study costing, budgeting, and break-even analysis, which help managers plan effectively and control business activities. These tools allow students to understand the financial implications of decisions and develop quantitative skills needed for higher-level analysis.
