Entertainment Business Finance
This month was amazing. I learned so many things that pertain to entertainment finance, that I'm now starting to see the big picture when it comes down to starting and running an entertainment business. One of those key things was that a public corporation has to provide an annual report about their financial standing. I also learned about the time value of money. This deals with how companies really get the most out of their profits by investing the excess cash into either a bank or an investment portfolio in order to gain the highest interest. I learned about capital budgeting and how that it is necessary to keep accurate records, and how to predict when there is an issue within the company, by using mathematical formulas to determine a financial analysis. Some concepts were easy to understand, as the difference between a lump sum and an annuity, which is a series of equal payments. Other concepts were quite challenging, like learning about the rule of net present value, and how to decide how to make the best choice in business investment. Another interesting lesson learned was how to determine opportunity cost, which are decisions that take time, money, and talent into consideration to find out how well a company or individual is using its money, time and talent. Each discussion board was helpful to me in this course, as it gave me an opportunity to reflect on what I had learned each week and discuss it with my peers while receiving valuable feedback on my ideas. I also learned about break-even and analysis, which is important to most companies, especially those with an inventory. I learned that it's important to know when your company breaks even from their initial investment in start-up costs to determine when they actually have a positive cash flow. In the last week of this four-week course I learned about cost structures and revenue streams, in addition to studying and creating my own pro forma statement for my company. This month was challenging for me, but well worth the effort.