Through the recent classes, I learned lots of new things about business that I have not touched before. All of these new knowledges help me open the door or business.
In class 5, I learned things about financial accounting which helps the company make decisions and look at their financial statement clearly. Besides, financial statement is divided into 3 categories-balance sheet, income statement and cash flow statement. Each of them includes different terms to calculate different financial activities of a company. What’s more, one of the most important formula I learned in this class was liquidity ratio for a company. It is used to determine a company’s ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Through this formula, I can compare two companies’ liquidity ratio to determine which one is more risky.
In class 7, I learned things about business strategies which is divided into generic strategies and competitive strategies. If a company wants to occupy the large part of the market, it must have its own strategy which is clear and unique. Through the globalization, lots of companies become more similar and fail to stay competitive. In this case, companies with clear and unique strategies make a big achievement in business since they sell goods at lower prices than rivals or differentiate their product from those of rivals. Although business strategy seems easy when written in words, it is really hard to implement in a real business situation.
In conclusion, through these classes, I am more interested in business now and I really want to explore in the business world to expand my knowledge about business.