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The library of essays of Proakatemia


Kirjoittanut: Maria Karimo - tiimistä Sointu.

Esseen tyyppi: Yksilöessee / 2 esseepistettä.

Esseen arvioitu lukuaika on 6 minuuttia.


Jyrki Niskanen and Mervi Niskanen 



In the book Yritysrahoitus, modern finance theory meets the real world of business management. The book provides a systematic, practical and real-world example of the influencing factors behind financing decisions. The book provides a comprehensive review on the key areas of corporate finance. The book has tasks that are grouped into basic and advanced exercises. The tasks are structured using real financial market information and adapting as closely as possible to real problem and decision situations encountered at the company level. I found that to be really unique about the book and that you got to try out your new learnings through the exercises. 

The book is intended for the teaching of business finance in higher education institutes for both basic and advanced courses. The book is also suitable for use in adult and continuing education and even for people who are interested in finance and want to learn more since the book is easy to read and understand. Yritysrahoitus serves as a handbook and reference book for business finance. The book had information I knew in the past as well as lots of new information as well as completely new information. 

Financial education through the book Yritysrahoitus 

In the start of the book, they answer basic questions of corporate finance. These answers help get an understanding and flow of reading. This book is a tool to make informed financial decisions. It provided a structured and comprehensive approach to understanding complex financial concepts and topics, making them accessible to different audiences. The book offers lots of information tailored to individual learning. It gives great examples on how having a clear understanding to making good financial decisions both in professional and personal life. This includes risk management by understanding the complex financial concepts for organizations to manage risks efficiently and minimizing potential losses. Having financial literacy enables people to take control on their financial wellbeing. By making the complex concepts accessible, people can manage their investments, savings, depts effectively so that they can improve their financial stability and security. 

The company’s goal is to maximize the wealth of its owners or increase shareholder value. The company’s financial management is primarily responsible for achieving this goal, because it participates in the company’s investment, financial structure and profit distribution decisions.  

The first chapter goes into detail about the reduced balance sheet of an operating company. The balance sheet was very familiar to me from the past, but this chapter helped me understand it in a deeper level. The balance sheet was divided into three main sectors, assets, liabilities and shareholders’ equity. Assets are what the company owns, liabilities are what the company owes and shareholders’ equity is the interest in the company’s assets after deducting liabilities.  


investments in quick assets 

The book explained that investing in quick assets is an important thing for all businesses to have to minimize the risk of bankruptcy. It’s important for a company to have some money ready to use right away, just in case they need it to pay unexpected bills or take advantage of good opportunities that they might receive. These quick assets help a business to avoid running out of money suddenly and to be prepared for unexpected expenses. Also, when a company has a good amount of quick assets, it shows that they’re financially stable and able to handle tough times if they come up. This makes a company more stable and trustworthy. 



Receivables are important for businesses because they show how much money the business is supposed to get from its customers. They need to pay close attention to them to make sure that they receive their money. Otherwise, it can be tricky to pay their own bills and keep the business running smoothly. 

Short-term asset accounts 

Short-term asset accounts are part of the accounting for businesses. They’re where a company keeps track of things it owns that can be turned into cash pretty quickly, usually within a year if needed. 

Reseach and product development expenses  

Having research and product development expenses fund for businesses, is the money they spend to come up with new ideas, improve existing products, or create new ones. This includes things like paying scientists, engineers, or designers to work on the project, buying materials or equipment needed for testing, and even renting out a space if they need it. 


Inventories are all the things a business has in stock to sell to customers. Keeping track of them while understanding how much they sell is important for the business to run smoothly so that they don’t run out of supply. 

Funding sources: 

Long-term liabilities 

Long term liabilities are promises the business makes to pay back money, but over a longer period. This could be money borrowed from a bank to buy a new building, or to invest in new equipment. 

Short term depts 

Short term depts are small loans or amounts owed that need to be paid back relatively quickly, usually within a year. These could be things like money owed to suppliers for goods or services, or short-term loans taken out to cover temporary expenses. 

Payable or other current liabilities 

As the financial market changes and diversifies, understanding the market and the problems related to financing decisions is an increasingly important part of the company’s everyday operations. In this book, financing issues are examined from the point of view of business management planning investment and financing decisions. In addition, the book draws attention to how the financial markets and the legality affect the financial status of the company.  



The books chapters covers also other key topics of business finance: 

  • Forms of businesses 

Different ways companies can be set up, like sole proprietorship (one owner), partnership (multiple owners), or corporation (legally separate entity). 

  • Financial markets and interest rates 

Places where people buy and sell things like stocks and bonds. Interest rates are the cost of borrowing money or the reward for saving money. 

  • Companys cash flows 

Money coming in and going out of a business. It includes income (like sales) and expenses (like salaries and rent). 

  • Methods of financial statement analysis 

Ways to look at a company’s financial reports to understand how well it’s doing. This can involve ratios and comparisons. 

  • Loans 

Money borrowed from banks or other lenders that needs to be paid back with interest. 

  • Dividends 

Payments made to shareholders from a company’s profits as a reward for owning stock. 

  • Investments and financial structure 

How a company manages its money, including where it gets money from and how it spends it. 

  • Investment decisions 

Choices made by individuals or companies about where to put their money to get the best return. 

  • Profit and loss statements 

Reports that show how much money a company made (profit) or lost over a specific period. 

  • Construction of the financing plan 

Creating a strategy for how a company will raise and manage its money. 

  • Short term financial projections 

Predictions about a company’s finances in the near future, usually within the next year. 

  • Inventory management 

Keeping track of and controlling the goods a company has in stock to meet customer demand while minimizing costs. 

  • Foreign investments 

Putting money into companies or assets located in other countries. 


  • Exchange rates 

The value of one currency compared to another, which affects the cost of doing business internationally. This is important to take into consideration while doing international business.  


I got a practical view on the legalities behind financial decisions. This book gave many good real business life examples and crucial aspects of business administration. The book helped me have better understanding on financial thinking and introduction on different tools and techniques used in finance as well as into various sources of financing, such as equity and dept financing and the way they affect a business of a company’s lifecycle. The book covered topics such as financial planning, risk management, and other practical aspects of finance that I had not thought about before but might be facing in the future while entering working life and entrepreneurship.  

I liked how the book had also tasks to do, I read the questions and thought of the answers. A large part of the tasks were using real financial market information that simulated real life problems at a company level.  

I liked how the book offered diverse perspectives and practical guidance for understanding the complexities of finance. I highly recommend this book for unlocking the understanding of financial opportunities. The book helped me improve my decision making skills by understanding different financing options and their implications. It enabled me to do informed decisions regarding capital structure, investment opportunities, and risk management. Personally, I’m interested in finance, I found this book to be a great resource for expanding my knowledge and enhancing the probability of success for my future career. The book is informative for entrepreneurs as well so that they can fund their business and manage financial resources effectively as well as navigate financial challenges that might occur. Reading books like Yritysrahoitus is important for business students to stay ahead of the industry and develop and deepen their knowledge. 


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