P R O F I T

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L O S S
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BUSINESS ENGLISH COURSE
DUT FINANCE AND ACCOUNTING ESTC F2 FIN/ACC 2022/2023

By : Mr AKRAM EL FANTAROUSSI
COURSE OUTLINE 01 INTRODUCTION TO BUSINESS WORLD AND ECONOMICS

02 BUSINESS ROLES AND POSITIONS

P R O F I T
I 03 FINANCE AND ACCOUNTING OVERVIEW

L O S S
K
04 ECM (EQUITY CAPITAL MARKETS) FINANCE

05 CONCLUSION AND RECOMMENDATION

 Business Economics, also called Managerial
Economics, is the application of economic
theory and methodology to business.
Business involves decision-making.
Decision making means the process of
selecting one out of two or more alternative
courses of action.
The question of choice arises because the ba-
sic resources such as capital, land, labour and
management are limited and can be employed
• INTRODUCTION in alternative uses.
The decision-making function thus becomes
TO BUSINESS ECONOMICS one of making choice and taking decisions
that will provide the most efficient means of
attaining a desired end, say, profit maximation
BUSINESS ECONOMICS ACTORS

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 BUSINESS BUSINESS
MANAGEMENT FINANCE
Business management is managing the
coordination and organization of Business finance is the funding
business activities. This typically a business needs for
includes the production of materials, commercial purposes. It is the
money, and machines, and involves money business owners require
both innovation and marketing BUSINESS FIELDS to start, run or expand a
business.

BUSINESS BUSINESS LAW

ACCOUNTING

Business Accounting is a Business law deals with the

process of identifying and creation of new businesses and
measuring quantitative financial the issues that arise as existing
activities and communicates businesses interact with the
these financial reports to the public, other companies, and
decision-makers. the government.

BUSINESS BUSINESS
MARKETING ECONOMICS
Business Economics, also
Business Marketing is the process of
called Managerial Economics,
interesting potential customers and clients
is the application of economic
in your products and/or services. The key
theory and methodology to
word in this marketing definition is
business
"process"; marketing involves researching,
promoting, selling and distributing your
products or services.
BUSINESS ROLES
AND POSITIONS

.
 BUSINESS ROLES
What are business roles?

Business roles are positions that have certain sets of responsibilities. Business owners typically plan an organizational structure
that outlines the different types of jobs and the tasks that each job type is responsible for. Depending on the industry and the
nature of the company, business roles can range from executive-level titles, such as chief executive officer (CEO), to more
operational business roles like an administrative assistant or customer service representative.

Business roles allow owners and stakeholders to designate specific titles and duties to employees. Setting up business roles allows
employers to delegate important tasks to professionals who are qualified to perform these jobs. When employees have a clear
understanding of their responsibilities, they can better contribute to the company's success.

MANAGEMENT OWNERS
 9
TYPES OF BUSINESS ROLES
In many organizations, business roles follow an organizational structure,
where employers designate executive-level, managerial and operational
roles:

EXECUTIVE ROLES MANAGERS OPERATIONS AND

Executive-level roles include senior-
level positions and often feature a
central executive in charge of an entire
organization or large department
within an organization. For instance, a
chief financial officer (CFO) is
responsible for overseeing the entire
financial department. Executive jobs
typically require extensive work
experience in addition to qualifications
like education, skills and
certifications.
Managers and supervisors make up
many of the essential mid-level
business roles within an
organization. Executives usually
assign these roles and are generally
in charge of directing them. For
example, a chief operating officer
outlines the needs for a human
resources department. They hire and
oversee an HR manager who is
responsible for supervising the
human resources staff.
PRODUCTION
At this level, business roles can encompass
one or more professionals fulfilling the
responsibilities of the same role, especially
in larger organizations. For example, a
corporation could have a team of
accountants who fulfill the same duties.
In smaller businesses, there may be only
one professional, such as an administrative
assistant, filling the needs of the business
within a given role.
 10

At this level, business roles can encompass one or more professionals fulfilling the responsibilities of the same role, especially in
larger organizations. For example, a corporation could have a team of accountants who fulfill the same duties. In smaller businesses,
there may be only one professional, such as an administrative assistant, filling the needs of the business within a given role.

Executive and top-level business roles

The following business roles include executive-level positions:

Chief Executive Officer (CEO) Chief Operating Officer (COO)

Chief Financial Officer (CFO) or Controller
Chief Marketing Officer (CMO) Chief Technology Officer (CTO) President
Vice President
Executive Assistant

Chief Executive Officer (CEO)

The chief executive officer (CEO) of a company is the leading role responsible for making top-level decisions, gathering resources
that support the company and driving operational and structural changes that directly influence organizational growth. In smaller
businesses, this role can be interchangeable with the president, and it's also common for an owner to hold these titles.
Chief Operating Officer (COO)
A chief operating officer (COO) oversees the company's operations. In smaller organizations, this role can defer to the general
manager, a similar role to a COO. These top-level business roles ensure processes run efficiently and often oversee various
departments to ensure employees are completing their work properly and in a timely manner.
Chief Financial Officer (CFO) or Controller

The chief financial officer (CFO), or controller, is responsible for the cash flow and the financial success of a business.
Typically, a CFO and controller are two separate business roles within large corporations, but smaller organizations may
combine these two roles into one job title. The CFO is usually responsible for finding investors and external funding
opportunities for growing their business, while the controller oversees the expenses and assets of the company. When one
individual assumes both financial roles, they manage both incoming revenue and outgoing expenses.

Chief Marketing Officer (CMO)

The chief marketing officer (CMO) directs marketing campaigns, plans marketing budgets and manages the entire
marketing department of their company. This role may be in charge of multiple marketing teams, each with their own team
leader or marketing manager. Additionally, the CMO usually makes the final decisions regarding the development and
implementation of various marketing projects.

Chief Technology Officer (CTO)

The chief technology officer (CTO) manages the technological functions of their organization. They commonly integrate
new technology trends and ensure any technology they introduce meets the needs of their company. In companies that
have large IT departments, the CTO oversees the high-level functions.

President
Some organizations designate a president instead of a CEO. While many of the responsibilities are the same between these
two roles, a president may take on additional tasks that a CEO may not. They could perform some of the tasks that a COO
and a CFO are in charge of in larger businesses. As a company grows, though, the president's role may encompass more
defined tasks—like handling top- level decisions and directing their management teams—rather than a broad range of
executive functions. 10
Managerial business roles
Several managerial business roles are important to overall business operations, including:

• Marketing manager
• Product manager
• Project manager
• Finance manager
• Human resources manager
• Marketing manager

A marketing manager oversees the entire marketing department,

depending on the
size of the company. In large corporations, there can be multiple teams within the marketing department, each with their own
marketing manager. Each manager reports directly to the CMO. In smaller businesses, the marketing manager may be the
only top-level business role in charge of directing marketing efforts.

Product manager
Product managers analyze product markets and streamline processes related to product development. A product manager
may focus their efforts on researching customer markets, evaluating in-demand products, assessing manufacturing
processes for making products, analyzing competitor products and collaborating with marketing teams to develop strategies
for promoting products.

Project manager

Project managers oversee many of the planning and development processes for business projects. These professionals initiate,
design, monitor, control and finalize projects. This business role may have the added responsibility of analyzing and
mitigating risks to various projects, and they commonly work with other department managers—such as marketing and 11
product managers—to plan and develop each aspect of a project, including budget, resources and timelines.
Finance manager

Finance managers usually analyze costs and revenue and use this data to prepare financial reports. In smaller organizations,
this business role may oversee several financial aspects of business operations, such as calculating and projecting incoming
revenue and company expenses. In larger businesses, the finance manager may be responsible for managing staff accountants
and bookkeepers, and they rely on the work of these professionals to create accurate financial reports and forecasts.

Human resources manager

Human resources managers direct the human resources department. They oversee large teams within the human resources
department, or in smaller organizations, they may be in charge of only a few staff members. This business role is crucial for
operations because they recruit, interview, hire and onboard employees. HR managers commonly consult with top-level
executives to initiate strategic plans and act as a liaison between upper-level management and company staff.

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Operational roles

The operational business roles within a company are essential for day-to-day processes and include positions
such as:

• Marketing specialist Business analyst

• Human resource personnel
• Accountant
• Sales representative
• Customer service representative Administrative assistant

Marketing specialist

A key role in the marketing department is the marketing specialist. Specialists perform several functions, such as
gathering customer data, researching target demographics and optimizing content for SEO purposes. Many
organizations have more than one marketing specialist working in the department, and this role typically reports
directly to the marketing manager.

Business analyst
Many companies employ business analysts who are responsible for evaluating the growth and development of the
business. This role analyzes market trends, projects future revenue and develops plans that help businesses track
profitability, product viability and the overall success of operations.

Human resource personnel

The human resources department is an essential component for any business, and the employees in this department
work under the supervision of the HR manager. The staff in these business roles commonly handle payroll tasks,
employee schedules and performance reviews and evaluations. In large companies, the HR department can consist 13
of several HR managers and many staff members under their direction.
Accountant

An accountant oversees the day-to-day transactions of companies, including sales transactions, expense
payments and tax reporting. Accountants in smaller organizations may have responsibilities that finance
managers or CFOs handle in large business environments.

Sales representative
Sales representatives connect with customers to sell their business' products or services. Successful sales teams
use effective communication and interpersonal skills to build relationships with and maintain loyalty among
their company's customers, which directly influences the revenue stream of the business.

Customer service representative

Customer service representatives help customers solve problems, handle product returns and refunds and
resolve issues when customers are unsatisfied. These operational roles are essential for building a reputation for
their company and fostering long-lasting customer relationships.

Administrative assistant
The administrative assistant, office assistant or receptionist serves as the first point of contact for visitors and
clients entering the business. They may perform many essential tasks such as managing the phone lines,
communicating between clients and business partners and keeping staff schedules organized. They may even have
tasks like data entry to help keep company documents current and accurate.

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FINANCE AND
ACCOUNTING
OVERVIEW
 Accounting and Finance
Introduction to financial accounting

Accounting is the parent function of recording and reporting business

transactions in a systematic manner. With the evolution of business, different
BUY stakeholders who are either directly or indirectly connected to a business
require a different type of accounting information for decision making.

As a result, the parent function of accounting required separate branches to

fulfil this need, and financial accounting is one among the several branches of
the accounting designed.

BUY
SELL
FINANCE FIELDS ACCOUNTING FIELDS

SELL
 BUSINESS ACCOUNTING AND FINANCIAL STATEMENTS

1. Profit and loss (P&L) statement

A profit and loss (P&L) statement, also referred to as

an income statement, is used to evaluate current
financial condition and prospects for growth. A P&L
summarizes business revenues generated and
expenses incurred over a specific period of time.
Whatever’s left after the expenses are deducted is
profit, and if expenses exceed revenues, then your
P&L shows a loss.
It’s common for many small businesses to show losses
at various times, such as during launches and
expansions. However, continuous losses are a “red
flag” for business owners, because they indicate that
more money is consistently going out than coming in.
When you stay on top of your financials, you can find
these issues early on and address them more
effectively.
2. Cash flow statement

Cash flow statements help business

owners plan day-to-day and long-
term investments and provide
owners, lenders and investors with
the business’s cash position.
3. Balance sheet

Your business’s balance sheet helps you track your

business’s growth.
Like P&Ls, balance sheets show how your business
is doing at a particular point in time – quarter by
quarter or year to year, for example. Unlike P&Ls,
though, your balance sheet provides a snapshot
equation of your business’s assets, stated as business
liabilities plus owner equity.
Assets can include short-term assets, such as money in
the business checking account and inventory that you
expect to turn around quickly. Long-term assets
include real estate and major equipment. Similarly,
liabilities are made up of short-term debts like costs
for producing current goods and long-term debts, such
as business loans. Equity includes cash invested by the
owner or investors and retained earnings.
4- A statement of shareholders' equity

A statement of shareholders' equity details the

changes within the equity section of the
balance sheet over a designated period of time.
The report provides additional information to
readers of the financial statements regarding
equity-related activity during a reporting
period. The statement is particularly useful for
revealing stock sales and repurchases by the
reporting entity; a publicly-held company in
particular may engage in these activities on an
ongoing basis.
Accounting Fields
 Finance
Finance is the management of money (Funds, Financial Assets) and includes activities such as investing, borrowing, lending, budgeting,
saving, and forecasting.

There are Four main types of finance:

(1) personal
(2) Corporate or ECM
(3) public
(4) Government

Range of Finance Topics

•Interest rates and spreads
•Yield (coupon payments, dividends)
•Financial statements (balance sheet, income statement, cash flow statement)
•Cash flow (free cash flow, other types of cash flow)
•Profit (net income)
•Cost of capital (WACC)
•Rates of return (IRR, ROI, ROA)
•Dividends and return of capital
•Shareholders
•Creating value
•Risk and return
ECM CAPITAL
MARKETS
FINANCE
 .

Equity Market Meaning

The equity market refers to the platform where companies issue shares for sale and
investors buy them, helping the former raise capital for enhancing business growth and
opportunities. It gives the investors a proportionate stake in the company; hence, they gain
ownership of the firm through the shares they purchase.
 ECM primary market
Also referred to as the issue market, this is the place where companies introduce or issue their equity market
shares for the very first time. The companies can publicly give the shares as an IPO or through a
Follow on Public offer (FPO). They can also consider rights issues, allowing their existing shareholders to
maintain their earlier ratio in the shares and sell securities at a price lower than the current market prices.

ECM secondary market market

As soon as the securities are put on sale after their first time, they are said to enter the secondary market, where they
move from the hands of one investor to another. The securities of semi-government bodies, government organizations,
joint-stock companies, etc. trade under this market category. It is for the investors who are into daily trading.
Trading fields
 P R O F I T
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