Finance: A Core Online MBA Course

Finance by definition is the science of funds management. This management comes in all forms, but online MBA students are primarily exposed to business-level management alongside personal and public forms of finance. It is a component that is well-worth studying as it introduces advanced financial concepts that are required of managers and leaders in a corporate environment. It is something that caters to students who are interested in accountancy and cash flow, but it is also important to note that successful completion is a requirement of an online MBA course. This means that students must give it their all in order to graduate!

An Overview of Finance in an Online MBA Program

Finance in a corporate setting can be divided into three main areas of study: capital, budgeting, and the management of assets

Financial capital in a nutshell is what a business possesses in terms of available funds to purchase production equipment or the materials needed to offer a service. There are three sources of capital, which are categorized according to their intended usage. For example, long-term capital is a fund that can be harvested over a seven year period. Types of long term capital include retained profit, project finance, and debentures. Medium term capital can be used in variable periods, but is usually seen as most appropriate for periods between two to seven years. This includes options such as term loans, leasing, and hire purchases. Short term capital is only advisable for immediate cash flow with options as such bank overdrafts and deferred expenses.

Budgeting is an important practices for businesses. It serves two primary purposes, which include forecasting expenditures versus revenue and seeing if the projected forecasts were accurate after a fixed time period. This allows businesses to stay on top of their financial matters by quickly spotting inaccuracies in their projections and being able to compensate for them before possibly reaching for short term capital options.

The management of assets concerns either consumer purchased goods or physically owned property. A credit policy is the most common form of consumer asset management and can be quite a lucrative marketing tool by allowing customers to “buy now, pay later”. However, overdue accounts are a prime concern for credit policies and businesses will be met with the administrative hassle of collection for delinquent accounts. Physically owned property is typically protected by insurance or by other physical means, such as safeguarding.

Is Finance an Easy Online MBA Component to Pass?

Finance is a very intensive component and aims to deliver a substantial amount of course material in a short space of time. It is often regarded as one of the more difficult core components as financial matters are very stringent and do not offer room for flexibility. Students must be prepared to make a strong commitment to the course as it is a prerequisite of graduation!

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