About This Chapter
Praxis Business Education: Business Finance - Chapter Summary
Prepare for the Praxis Business Education subject test by exploring the roles of financial management in business alongside steps in the financial planning process. Instructors teaching this chapter's video lessons discuss methods for the following:
- Establishing financial controls
- Securing operating funds
- Raising debt and equity capital
- Using short- and long-term financing
We have assembled this collection of instructional videos, transcripts and self-assessment quizzes to help you prepare for the exam. Lessons are taught by experienced instructors, and the topics they discuss are the same ones found on the actual test. Use these resources to brush up on areas you're not quite familiar with and create a study plan that will see you through to exam day.
Praxis Business Education: Business Finance Objectives
Consider using this chapter to shore up your knowledge of the risks and responsibilities associated with managing a business' finances as well as the types of business capital. You'll need to be familiar with these and related topics to successfully answer the 18 accounting and finance questions on the Praxis Business Education exam.
The test takes two hours to complete and consists of 120 total multiple-choice questions. Results on the exam are used by some state education boards to assess your business content area knowledge and award teaching credentials in this area.
1. The 5 C's of Credit
What's your creditworthiness? When a business owner needs a loan from the bank or financial institution, they will go through an evaluation process to determine their eligibility. Business owners need to consider what financial institutes look at. In this lesson you will learn about the process known as the 5 C's of credit.
2. The Role and Responsibilities of Financial Managers
Financial managers play a pivotal role in the success of companies. In this lesson, you'll learn about the duties and responsibilities of financial managers. You'll also have a chance to take a short quiz after the lesson.
3. The Financial Planning Process
Financial planning is essential for the success of any business. In this lesson, you'll learn about the financial planning process that businesses perform, including preparation of a master budget, capital budget and cash budget.
4. Debt Capital Vs Equity Capital
Sufficient capital is essential for starting, maintaining and growing a business. In this lesson, you'll learn how a corporation can raise capital through equity and debt. You'll also learn about the advantages and disadvantages of each approach.
5. Sources of Short-Term Financing
Companies often need to utilize financing to cover shortfalls in cash flow. In this lesson, you'll learn about sources of short-term financing available to companies including trade credit, lines of credit, bank loans and credit cards.
6. Sources of Long-Term Financing
Some businesses require a large amount of capital to get off the ground or expand. In this lesson, you'll learn about sources of long-term financing, including commercial loans, selling equity and issuing debt.
7. Liquidity Ratio: Definition, Calculation & Analysis
The financial stability of a company can be tested in many ways. One of the quickest ways to see just how well a company is performing is to use financial ratios. In this lesson, you will learn what liquidity ratios are, how to calculate them, and how to interpret them.
8. What Are Current Assets? - Definition, Examples & Calculation
In this lesson, you will learn the meaning of the term current asset. You will also learn what items fall into the category of current assets and how they fit on a balance sheet.
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Other chapters within the Praxis Business Education - Content Knowledge (5101): Practice & Study Guide course
- Praxis Test: General Info
- Praxis Business: Accounting
- Praxis Business: Personal Finance
- Praxis Business: Foundations of Communication
- Praxis Business: Written & Oral Communication
- Praxis Business: Employment Communication & Career Research
- Praxis Business: Economic Allocation of Resources
- Praxis Business: Economic Systems & Market Structures
- Praxis Business: Role of the Government in Economics
- Praxis Business: Economic Indicators of Growth
- Praxis Business: Entrepreneurship
- Praxis Business: Information Technology Operations and Concepts
- Praxis Business: Technology Tools
- Praxis Business: Computer Applications
- Praxis Business: Programming & Design
- Praxis Business: Foundations of International Business
- Praxis Business: International Business Environment
- Praxis Business: Contract Law
- Praxis Business: Consumer & Computer Law
- Praxis Business: US Court System
- Praxis Business: Marketing
- Praxis Business: Management
- Praxis: Professional Business Education
- Praxis Business Education: Content Knowledge Flashcards