Lesson 20 paragraph 5.2 part 1

• Economie
• Middelbare school
• havo
• Leerjaar 3

Welcome T3!

Economics: lesson 20

Today: 

Chapter 5: The value of a company

Paragraaf 5.2: How do you finance an enterprise? 

 

1. Lesson goals

2. Checking the homework 

3. Short explanation

4. Time to do the homework

Homework

1 until 9 of paragaph 5.1

Together: 3, 6, 8 and 9

Lesson goals

1. You can explain what liabilities are and what their purpose is.

2. You can give examples of owners’ equity.

3. You can give examples of debt capital.

4. You can explain solvency and calculate the equity to assets ratio.

5. You can explain and calcultate the liquidity of a company

Mortgage

A loan on a building

The money borrowed from friends /  family or stragers via crowdfunding is called a private loan

Also called creditors. 

Suppliers or other people the company owes money (so it is a debt)

Owner's equity

Natural person (e.g. general partnership): Money from the 

entrepreneurs + profit

 

Legal bodies (e.g. corporation): the same + stock equity

It can be seen as a debt that the company has with the entrepreneur(s).

Solvency

When the ratio is 50% or higher this means the company is solvent. (=debts are covered by owner’s equity)

Let's do assignment 21 together

Liquidity

.

When the liquidity is 100% it means you can pay off 100% of your shortterm debts

When it is 50% you can pay off the half of your short-term debts

Lesson goals

1. You can explain what liabilities are and what their purpose is.

2. You can give examples of owners’ equity.

3. You can give examples of debt capital.

4. You can explain solvency and calculate the equity to assets ratio.

5. You can explain and calculate the liquidity of a company

Let's get down to business!

• What: Do exercises 11, 12, 13 17, 19 

                 + Lesson two: 20, 21, 22, 24, 25 and 26

• With whom: You may choose yourself

• Purpose: L2 goal: administration English + accomplish the lesson goals

• Done?: Work on another subject