Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
   1. Forms of finance - case study
   2. Forms of finance - overdraft report
   3. Forms of finance - sole trader report
   4. Forms of finance - short answer questions
   5. Tesco: sale and leaseback
   6. SouFun: Flotation IPO
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

SouFun: Flotation IPO

Read the article SouFun sets eyes on $300 million flotation IPO and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.

Question 1

Define the term Initial Public Offering.

Question 2

Explain how the funds raised from an IPO will be used by the SouFun.

Question 3

Explain the role of merchant banks, such as JP Morgan Chase, in an IPO.

Question 4

Analyse the advantages and disadvantages of a flotation.

Extension activity:

You may wish to investigate the following statement:

"The $30.5 billion that new issues raised globally in July was the most since November 2007".

See if you can find some other examples of recent IPOs and examine why there is a link between the popularity of IPOs and the business cycle.