Categories of Finance QAA 2 3 OriginWater Beijing

Objective:

Explain the sources and availability of finance to a start-up or growing business
Identify the pros and cons of different types of finance and list the priority order to finance
Analyse the difference of finance for different periods of a company

Overview:

What are the Categories of Financing?
Discussion Questions
Pecking Order Theory
Case study: Beijing OriginWater

Activity:

1. The session starts with slides which instruct the learner on the learning outcomes of the session and the core knowledge required

Slides 3 – What are the Different Categories of Finance?

2. Class/group Discussion on benefits of different types of finance

Slide 4 - Discussion Slide

3. Introduction to Pecking Order Theory

Slide 5 - Pecking Order Theory Introduction

4. Introduction to Beijing OriginWater

Slide 6-8 - Case Study: Beijing OriginWater

5. Class/group Discussion on predicting the types of finance to be used

Slide 5 - Categories of finance

6. Play the case study video

Slide 9 - http://v.youku.com/v_show/id_XMTY2ODI5Njg5Mg

7.Class/group Discussion on sources of finance used in Video

Slide 10

8. References

Slide 11

Session Material:

Slides

Video Link: http://v.youku.com/v_show/id_XMTY2ODI5Njg5Mg

Company Profile

This session is designed to fit into a 45-60 minute session.

Skill Development:

Key Takeaways

It is important to think about the different sources of finance and their implications.
The finance needed is based on the business model, the industry and the scaling of the business.
The sources of finance may change based on the location of the startup.

As a facilitator, it is important that you allow them to explore various business models and find the learning within that. This can involve team work with members sharing different view point which require support in developing

Resources:

Pens and Post-its

References:

Brealey, R.A., Myers, S.C., Allen, F. (2008). Principles of Corporate Finance. McGraw-Hill/Irwin, New York.
Myers, S.C., Majluf, N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have, Journal of Financial Economics,13 (2): 187–221.
Frank, M.Z. and Goyal, V.K., 2003. Testing the pecking order theory of capital structure. Journal of financial economics, 67(2), pp.217-248.