Financing the Short Term Obligations of The Business - Coursework Example

Only on StudentShare

Extract of sample
Financing the Short Term Obligations of The Business

Trade Credit implies the allowance of credit businesses by the providers of raw materials and other equipment. In this type of financing, though no cash is allotted to the business, but it is given the liberty to delay the payment for the goods up to the termination of the credit. Bank Credit is another popular source of short term financing which allows businesses to draw credit at once or in phases. There are various sub-categories of Bank Credit such as Loans, Cash Credit, Overdraft and Discounting of Bill. The third short term financing source is Customers’ Advances in which businesses ask customers to pay a part of their payment in advance. This is often the case when orders are large as it facilitates the company to overcome its short-term necessities. The fourth source is Account Receivables which are sold to bank or any other finance company through Factoring. In this manner, the business selling the receivables gets the amount while the finance company takes over all the associated credit risks (World Academy Online, 2011) Task 2 1. Activision Blizzard Inc as well as Electronic Arts Inc. have financed their short term requirements mainly through Bank Credits and to some extent through the selling of Accounts Receivables too. ...Show more

Summary

Financing the Short term Obligations University Introduction The purpose of this report is to evaluate the financing of short term debts and obligations. The report has been divided into two parts. In the first part, sources of short term finance for businesses’ have been described…
Author : knikolaus
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Financing the Short Term Obligations of The Business"
with a personal 20% discount.
Grab the best paper

Related Essays

Short-term obligations
The study recommends that the management of PepsiCo formulate policies towards improving its efficiency and liquidity ratios. This is because the company is well beaten by McDonalds that is its competitor in the industry. The paper therefore recommends change in presentation of financial reports to include all items that are applicable to analysis of financial statements.
5 pages (1250 words) Essay
Financing the Short Term Obligations of The Business
They are used to cushion for cash flow or secure liquid funds in the short run of the business. A comparison of Mark & Spencer and Morrison Company is analyzed below for liquidity and management of working capital. Modes of short term financings used by these companies are also assessed.
5 pages (1250 words) Coursework
Financing The short Term Obligations of the Business (BMW vs Mercedes)
The short-term finance refers to that finance which is obtained for a shorter period of time, generally for a period of less than one year. After obtaining the short-term finance, the companies make use of it in either raising working capital for the business or financing other areas of the business.
4 pages (1000 words) Assignment
Financing the Short Term Obligations
In the first part, sources of short term finance for businesses’ have been listed and then explained. Whereas, the second part contains evaluation of the financial performance of two organizations, that is, McDonalds and Burger King on the basis of the latest annual reports released by the two companies along with the financial ratios.
4 pages (1000 words) Coursework
Financing the Short Term Obligations of The Business
The methodology provides a description about four short term finance sources availed by the businesses. Each one is separately described. Subsequent to that, the liquidity and efficiency ratios of Sainsbury and Tesco have been computed and compared. Four different sources of short term finance Short term finances fulfil the day-to-day operations of business.
5 pages (1250 words) Assignment
Financing the Short Term Obligations of The Business
There are several ways of raising short term funds for the business which are: a. Commercial Loan and bank overdrafts Commercial loans are loans usually provided by banks for the financing needs of a business. Commercial banks typically offer straight term loans to credit lines that would be used in the various operation of the business (Raiborn 2010).
5 pages (1250 words) Assignment
Factors leading to the collapse of Northern Rock and their current position.
After it was demutualised in the year 1997, Northern Rock started growing rapidly in order to become the fifth largest mortgage lender of UK. The aggressive expansion of Northern Rock was funded by heavy reliance on unsecured and secured borrowings. Moreover in the year 2006 it entered in to subprime lending by entering into a deal with Lehman Brother.
11 pages (2750 words) Dissertation
Financing: Long Term and Short Term
Finance makes one of the fundamental requirements for establishment and good running of a business. Finance, however, may be acquired through different methods depending on its availability and the ease of repaying it. Financing means the provision of financial materials that a business requires.
10 pages (2500 words) Essay
The Impact of Lobbying on Standard Setting in Accounting
Knowing the impact or influence of something on another thing could be a way determining the desired status of the latter thing. This paper presupposes the existence of an impact of lobbying on standard setting and this would become more evident meaningful after a critical examination and discussion of their relationships with relevant examples.
9 pages (2250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT