Business Mathematics is important in the business operations since it enables entrepreneurs to record information and manage their organizations in a strategic way. Business Mathematics is applicable in accounting, stock taking, marketing, sales and productions budgeting, financial analysis, price determination and other areas that need calculation or Business Mathematics concepts. Business Mathematics courses are offered to those students who are pursuing business courses such as business administration, economics and commerce. The common Business Mathematics units are the business calculus and the business statistics. Business Training in Kenya has related articles.
Concepts and models used in Business Mathematics
Business Mathematics is a branch of mathematics that is used in business courses or application to assist the business operator in modeling business ideas. Unlike the normal mathematics which has minimal application in life, Business Mathematics concepts are commonly applied in the day to day running of the business. Business Mathematics concepts include the elementary arithmetic which is useful in calculation of money figures, algebra useful in determining business variables, statistics is important in economics and commercial applications and probability is used in business areas where occurrence of events is hard to be predicted. Business Mathematics is used in calculation and interpretation of business concepts. For example, ratios and percentages are important in accounting since they are used in calculating accounting ratios such as the markups margins, discounts and others. Advanced Business Mathematics is used by business managers in administration and supervision of the organization. Advanced Business Mathematics includes calculus, matrix, qualitative analysis, advanced statistics and linear programming. These types of Business Mathematics help managers analyze situations or events and come out with the suitable solutions for the benefit of the organization.
Does an entrepreneur need to be Business Mathematics knowledge
Business Mathematics is applicable in business for many calculations. An entrepreneur will be required in one way or the other to use some models in his or her business operation. It is evident that Business Mathematics is like an asset that a business must have in order to operate profitably. The difference between an entrepreneur who has Business Mathematics knowledge and the one without is that the business of the former person is less likely to collapse since there are strategic decision that are made and forecasting of the business future that help the business to survive in all situations. Moreover, many of the businesses are using computers and other technology that will be difficult to operate if an entrepreneur does not have the Business Mathematics.
Business Mathematics helps the business person avoid making mistakes that one may make in the management of the enterprise. If the business managers make good use of Business Mathematics they have they will be able to target potential clients to the business, minimize the production costs, choose the right products to sell, determine the best marketing strategy and above all be able to break even. A business will also be able to plan its future in advance and avoid entering into risky contracts. Business Mathematics is also important in the preparation of business budgets since without the arithmetic, time series and probability knowledge, one is not able to determine the future business requirements. Therefore, Business Mathematics assists to prevent and control the resource shortages and wastes for the business.
Conclusion in Business Mathematics
Business Mathematics includes the mathematic skills and information one need to use in the operation of the business in order to successful. There are several mathematics models or concepts used in business although; some of them are only useful for the managerial purposes. A business will in most cases operate in a profitable way if it uses Business Mathematics.
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