Ch 3: Praxis Business: Business Finance

About This Chapter

Survey methods for securing business capital with the video lessons and quizzes included in this finance chapter. We'll help you study financial controls, operating funds and more in time for the Praxis Business Education subject test.

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.

8 Lessons in Chapter 3: Praxis Business: Business Finance
Test your knowledge with a 30-question chapter practice test
The 5 C's of Credit

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.

The Role and Responsibilities of Financial Managers

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.

The Financial Planning Process

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.

Debt Capital Vs Equity Capital

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.

Sources of Short-Term Financing

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.

Sources of Long-Term Financing

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.

Liquidity Ratio: Definition, Calculation & Analysis

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.

What Are Current Assets? - Definition, Examples & Calculation

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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