Introduction

Capital expenditures are used to purchase “fixed” assets (land, buildings, machines). The cost of these items is one price at the time of purchase. Revenue expenditures are used to keep paying for things needed to run a business (rent, salaries, raw materials, etc.).  The cost of these recurring expenses may change every time a business pays for them.

 

A business can secure the money needed for these expenses through internal sources (personal loans or selling things the company owns, etc.) or external sources (bank loans, “business angels”, etc.).

Course curriculum

  • 1

    Course Information & Support

    • Please Check Now That Your Phone Is In Your Bag. Please Stay For 40 Minutes Of Learning & Sign Out For The Bathrrom During The Last 5 Minutes of Class.

    • Fact Sheet Packet Of Class Policies- Please Scroll Through And Review Again

    • How Well Are You Demonstrating The IB Learner Characteristics? Which Is Your Strength & Which Challenges You The Most?

    • Welcome IB Business Management Student

    • Here Is The Master Plan...

    • Infographic: IB BM Consists Of 5 Units With A Total Of 37 Total Chapters ("Courses") That You Will Be Responsible For Learning

    • Handout: Business Careers List

    • Chapter Work Cycle = This Is What We Are Doing In Class & For Homework Every Day

    • Finished Early? Don't Pack Up! Do This ...

    • Please Don't Disrupt Our 40 Minute Work Cycle. Leave For The Bathroom During The LAST 5 MINUTES Of Class.

    • Your Quarter Grade
  • 2

    Your Notebook Is Your Most Important Weekly Grade & Prepares You For The May Exams

    • New 3.1 Chapter = 2 Headings

    • Instructions For Combining The First Assignments

    • New 3.2 Chapter = 16 Headings

    • Read The Rules For Your Notebook Before Every Grading Day. This Paper Must Be Stapled Onto The Inside Cover Of Each Composition Notebook. (This Combination Of 2 Chapters Has 2 + 16 = 18 Headings)

    • How To Draw A Spider Map

    • Video: Watch A Spider Map Being Created (Best Study Tool)

    • LOOK: Page-By-Page Visual Instructions For Earning a 100% On Every Notebook Chapter. (NEW For 2024)

    • Video: Take A Tour Of A Business Management Composition Notebook

    • This Is How Your Notebook Pages Will Be Graded

    • Notebook Checklist & Reflection Sheet- Print, Complete, And Staple Onto The Last Page Of Your Chapter Notes BEFORE Scoring Day. It's Best To Pick Up This Blue Color Checklist In Class After We Finish The Chapter Review.
  • 3

    "RESOURCE BANK" = Topic Lessons (51) Begin Below this Point:

    • Welcome To The Unit On Finance!

    • Earn a 100% For Your Supplies On The First "Resource Bank" Day Of Every Quarter

    • What is the Resource Bank?

    • RB = 6 Sections & 51 Posts (= 3 RB Days + HW)

    • What You Should be Able to Do By the End of This Chapter
  • 4

    The Role Of Finance For Business

    • Video: What Is Money?

    • Visual: What Does "Capital" Mean?

    • What Does "Finance" Mean?

    • Why Might Finance Be Required?

    • Introduction to IB Chapter 3.1

    • Video: Examples of Capital and Revenue Expenditures

    • Key Terms Handout: Revenue Expenditure versus Capital Expenditure

    • Video: What Is The Difference Between Capital Expenditures And Operating Expenditures?

    • Video: Understand Working Capital

    • Video: Why Do Companies Need Finance/Money?
  • 5

    Internal Sources Of Finance

    • Introduction To Sources Of Finance

    • Handout: Summary of the Six Sources of Internal Finance
  • 6

    External Sources Of Finance

    • Visual: All Internal and External Sources of Finance

    • Handout: Summary of the Fourteen Sources of External Finance

    • Video: How Does A Business or Organization Find Corporate Sponsorships?

    • Video: How Do Pre-arranged Overdrafts Work?

    • Video: How Do Loans Work?

    • Video: How an Entrepreneur, a Business Owner and an Organization Prepare for a Bank Loan

    • Video: What's the Difference Between an Overdraft and a Loan?

    • Video: What is a Mortgage? (People Use This to Buy a House & a Business Uses It to Buy a Store or Building)

    • Video: Which is best? Buy, Lease or Rent Business Equipment?

    • Video: Quick & Simple Explanation of "Sale-Leaseback"

    • Video: What is a "Hire Purchase"?

    • Video: Debt Financing vs. Equity Financing

    • Exam Tip! (Advantages of Going Into Debt vs. Advantages of Giving away Your Equity)

    • Video: How Does a Business Use Trade Credit To Obtain Its Supplies or Inventory?

    • Video: Why Would a Supplier Need Trade Credit Insurance?

    • Video: What Are Government Grants?

    • Video: What Are Government Subsidies? (Potentially Controversial)

    • Video: How Does A Business Get Financing From A Venture Capitalist? (think: Shark Tank or Dragon's Den)

    • Video: What Are Angel Investors and How Do You Find One?

    • Video: What Are Stocks?

    • Video: What is Share Capital and How Does A Business Get This Money?

    • Video: What is an IPO? (Initial Public Offering)

    • Video: Why Do Companies Issue Shares? (Exam Details)

    • Video: Quick and Simple Explanation of Factoring!

    • Video: How Does Debt Factoring Help Finance Small Businesses?

    • Video: Details Concerning Debt Factoring

    • Video: Exam Review Of Debt Factoring

    • Handout: Debenture versus Loan (What's the Difference?)

    • Video: What Is A Debenture?

    • Handout: Four Advantages and Four Disadvantages of Debentures (Exam Answer)

    • Read: How Debentures Work At Top Schools In Hong Kong
  • 7

    3 Terms of Finance: Short, Medium, Long

    • Handout: Three Different Lengths of Time For Finance
  • 8

    Expenditures (Also Good For Your May Exam Review)

    • What's The Difference Between Capital Expenditures & Revenue Expenditures? (= Two Ways To Spend The Company's Money)

    • Video: Test Yourself On The Difference Between Capital Expenditure & Revenue Expenditure
  • 9

    Finance & The CCES Concepts (Creativity-Change-Ethics-Sustainability)

    • Handout: The Six Factors Influencing The Choice Of Finance

    • Infographic: Mnemonic Device For Sources Of Finance

    • Video: Summary of All Sources of Finance

    • Video: Overview Of Sources Of Finance = Exam Answers

    • Video: The 9 NEW Types Of Business Capital for Entrepreneurs

    • Read These CCES Definitions. If You Write Them On Your May Exams You Get Credit For Clear Evidence of "Synthesis & Evaluation"

    • CCES Assignment: Write 4 CCES Impact Statements For Chapter 3.2 Following The Given Model

    • Finished Early? Don't Pack Up! Do This ...
  • 10

    Let's Do Some Case Studies

    • Visual Of Case Study Day 1 Process

    • Instructions for Analyzing Case Studies

    • What Are Command Terms & Why Are They Important?

    • New Command Terms Definitions List (2024+) Exams = Rules for Answering Test Questions

    • Old Command Terms List = Rules for Answering Test Questions

    • STORIES: 3.1 & 3.2 Use 5 Minutes To Write Your Background Notes. Then 5 Minutes To Share Aloud Around Your Team. Then Ask For Your Questions To Be Opened.

    • ONLY OPEN THESE QUESTIONS AFTER EVERYONE HAS SHARED THE BACKGROUND AROUND YOUR CIRCLE. 3.1 & 3.2 Case Studies Questions. TEAM 1: SKIP THE ENTIRE LONDON CASE. TEAM 3: SKIP ONLY QUESTION E.

    • Show Your Teacher Your Completed Case Studies Then ...

    • Visual Of Case Study Day 2 Process (Read Your Presentation- Don't Show It- Give Command Term Definitions)

    • Finished Early? Don't Pack Up! Do This ...
  • 11

    Review Activities

    • Watch 3.1 Chapter Review

    • WATCH: 3.2 Chapter Review

    • EXAM TIP!

    • Video: Quick 4 Minute Review Of Everything

    • Video: Mr. B's 3.1 Review

    • Read & Review The Key Terms For This Chapter (Each of these should make sense to you now)

    • Instruction Sheet for Review Assignment- Both Chapters Are Due On Our One Review Day

    • What Should You Do If You Get Stuck On A Question? Don't Skip It! Do This...

    • New 3.1 Review Worksheet With 3 Tasks & No M/C (You Must Also Do The 3.2 Review Questions Posted Below)

    • New 3.2 Review Worksheets With 5 Tasks 1-15 M/C (Please Remember To Also Answer The 3.1 Review Questions Posted Above)

    • Put Away Your Pen & Pencil On Review Day- Only Have A Color Pen On Your Desk

    • Quizlet

    • Have You Achieved the Key Learning Outcomes?

    • You Are Almost Finished!

    • Don't Forget The Last Piece!

    • Finished Early? Don't Pack Up! Do This ...
  • 12

    For Later: This Is For May Exam Practice. Do These Practice Questions Before Your May Exams (Don't Look At The Markscheme Until You Have Written A Complete Answer)

    • Exam Practice: Capital Expenditure & Revenue Expenditure

    • Exam Practice: Sources Of Finance
  • 13

    Quiz 3.1 & 3.2 Scheduled

    • Come Here On Quiz Day If You Are In The Classroom - Makeups Are On The Day You Return

    • Visual: Quiz Day Schedule Of Activities

    • *** Makeup Quiz 3.1 & 3.2 (link) ***