September 2012
Intermediate to advanced
278 pages
7h 58m
English
Content preview from Finance for IT Decision Makers, 3rd Edition
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A2 FINANCIAL CHARACTERISTICS OF DIFFERENT BUSINESSES
There are three main categories of business:
- Manufacturing businesses – that sell products that have been converted into a different form from those that they bought.
- Buying and selling businesses – whether retail or wholesale, that sell products that are, generally, unchanged from those that they bought.
- Service businesses – that generally do not sell tangible products at all.
The following brief notes summarise their main financial characteristics.
MANUFACTURING BUSINESSES
Manufacturing businesses usually have the following financial characteristics:
- They have a requirement for non-current assets, such as buildings, plant and machinery.
- They carry substantial inventories, of three ...
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