How to use Finance for Business Decision-Making
Financial data is a very powerful tool for making the best business decisions possible. We recently put together a FIN 419 full course study guide and we wanted to share some of the awesome things we learned. This course sheds some light on the complex topics of finance that are usually relegated to the likes of Goldman Sachs and other swanky Wall Street Investment Banks.
Using Ranges to Predict Financial Performance
There are three basic ranges of performance in a financial project, which include aggressive, moderate, and conservative. Setting up this model before starting a financial project can greatly help your team's understanding of the expected outcome. In today's business world, many companies must think out financial projects in a sustainable way. In order to build a sustainable financial model, you must consider the entire range of potential outcomes. Risk is present in every project and must be accounted for in your assessment.
Choosing the Right Legal Entity for a Business
Businesses have the ability to choose between LLCs, LLPs, corporations, proprietorships, etc. As a student of finance, it can be overwhelming to choose between the vast range of potential structures. We have learned that there are significant tax implications based on the route you choose for your business. It's highly recommend that you check out the IRS definitions for legal identities before making a decision. Its much easier to start a business identity than it is to change it in the future
We hope you found these points helpful in your studies. Students taking FIN 419 are in for a real treat. This class provides a wealth of information that about finance that can be immediatly applied to your workplace.