Managing Financial Resoures and Decisions 4. Answer 13 questions.No more than 2500 words allowed. - Assignment Example

Only on StudentShare

Extract of sample
Managing Financial Resoures and Decisions 4. Answer 13 questions.No more than 2500 words allowed.

Issuing Equity is another smart option that can be used by the company. This involves issuing shares to investors at a price determined by the company and using them to raise finance for the equipment needed by the scientists
Lease is when the other company or financing organization buys the equipment and let our company use it against monthly charges known as rentals. The benefit of this option is that the company will not have to bear the entire cost of equipment upfront and in case the company does not need equipment in the future it won’t have to pay the rental and will not have to invest huge amount into buying the product.
Hire-Purchase is like a loan to the company. The difference here is that instead of lending you the money, the bank or other financial institution buys you an asset and charges a mark-up against this assets which is amortized by the monthly payments which includes payment of both principal and the mark-up. ...
Download paper

Summary

The collateral in this case will be the equipment itself. In other words, if the company fails to clear of its loan and interest, the bank will have the option of selling the equipment that was brought against loan in the open market. This process is called hypothecation and saves the bank against the risk of default…
Author : richie78

Related Essays

Managing Financial Resources and Decisions: Self-Evaluation
In my scenario, I used First In, First Out (FIFO) method due to its relevancy in the industry. And, a number of small companies in the bakery and confectionery industry prefer to avail this method. In addition to that, I found the significance of the cash budget for a small business as well. For example, if a small business owner does not maintain a cash budget, he or she would not be in a position to know how much cash is remaining and how much it is going to be expensed. Moreover, I also gained an access to the notion that it is development of a cash budget that enables the owner to make...
15 pages (3765 words) Essay
Managing financial resources and decisions.
Broadly, the types of sources of finance are divided into two categories namely: 1. Internal sources of finance 2. External sources of finance Different types of business have different sources of funds. The most common types of business are: sole trader, partnership, public limited company, and private limited company. Sole Trader: This form of business consists of one individual owner who is legally not disconnected from the business. But the company and personal accounts are separated. The internal sources of funds for this type of business only include the sale of the goods and stocks....
12 pages (3012 words) Essay
Financial resources and decisions management
equity and debt, comes with their advantages and disadvantages. Several factors, such as statutory rules and requirements, terms and conditions imposed by the counter party and general economic conditions are analyzed before selecting one of the options. The downside of acquiring financing through issuance of equity is that the procedure is quite complicated as compared to acquiring funds by approaching any bank. In most cases, a loan is acquired from any bank or financial institution by filing an application for the sanctioning of the loan. The bank or any other financial institution, after...
11 pages (2761 words) Essay
Do financial management decisions influence firm value?
Investment Decisions The BP is a well-established company that diversified into business such as chemicals, coal, gas, minerals and nutrition that would improve the effectiveness of the company. This diversification strategy led to problems in allocating investment resources between the different division’s projects of the large conglomerate. According to Dayananda (2002), the investment has led to losses that demonstrate that the company could not successfully compete in the fiercely competitive international oil business while also trying to compete in other business. Owing to the volatile...
4 pages (1004 words) Essay
Financial Information for Business Decisions
Marks and Spencer’s well established business attracts a great deal of consumer base irrespective of demography. The company’s main business consists in selling fabric items and clothing for men, women and kids’. The company, by applying prudent marketing techniques, has been able to grab market share of around 11.0%2 by value and 11.2%3 by volume. Marks and Spencer has also been actively involved in the business of marketing and selling edible products which has earned the company immense revenue in the past few years. Through its unmatchable food quality, Marks and Spencer is now...
8 pages (2008 words) Essay
Manging Financial Resources and Decisions
(NEEDHAM. 1995) Cost of Sources of Finance: Each source of finance has its cost which is an important factor to consider in choosing the source of finance. Equity capital as a source of finance, through ordinary and preference shares has a cost of share in the company’s holding and dividend payments have to be made to the shareholders. Retained profits as a source of finance potentially involve no cost to the company. Debentures are another important source of finance which has interest payments to be made to the debenture holders. Bank finance and overdraft facility by the banks also...
5 pages (1255 words) Assignment
Managing Financial Resources and Decisions
The paper will be divided into 4 sections. Section 1 will be focused on assessing the tangible cost and the opportunity costs incurred by Tesco when raising share capital through shares, bonds and proposed dividends, with hypothetical illustrations. Section 2 will aim at explaining the role and significance of financial planning in Tesco, while section 3 will remain focused on identifying the needs that investors of Tesco might essentially seek in respect to the fund raising activities of the company. Taking note on the changes expected in the PE (Profit-Earning) ratio, EPS (Earning per Share)...
3 pages (753 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!