Understand the sources of finance available to a business

Understand the sources of finance available to a business Assignment example
High school
Assignment
Finance & Accounting
Pages 5 (1255 words)
Download 0
Sources of finance should be different on different requirement of finance. For purchasing assets like building or machineries personal finance would be best because, these assets provide intangible return that might not be estimated. …

Introduction

Understand the sources of finance available to a business

This paper will qualitatively address different sub-areas of this topic like assessing various source of finance; control, bankruptcy and legal implications of those sources; in-depth analysis of financial implications and tax effects; selection of appropriate source of finance for various projects. This paper mainly consists of qualitative discussion on these four areas. Identifying different sources of finance available to a business Finance is very much essential for a new as well as an existing business. Efficient financing is also essential in all stages of a business. Finance is required for business development, business operation and business expansion. Finance is core limiting factor to any business and hence, it is crucial a business to manage its financial resources strategically and efficiently. There are various sources of finance available to a business at different benefit and cost. Therefore, it is important for a company to choose most suitable source of finance based on its requirement and potential to optimally utilize the resources to generate adequate return.

Financing for short term projects should be done from medium term financing like bank loan, issuing of preference shares, debentures etc. Long term projects or business acquisitions can be done from issuing ordinary shares. Debt financing should be neglected for long term investments. ...
Download paper
Not exactly what you need?

Related papers

International business finance
domestic capital budgeting project: consideration of additional factors 9 Characteristics of multinational companies (MNCs) affecting the cost of capital 10 Ram plc and Pram plc 11 Usefulness of the theory of Comparative Advantage: Motive for international trade 11 Reference 13 1. Financial and non-financial factors influencing establishment of overseas subsidiaries IBF Supplies Plc is a supplier…
Long-Term Sources of Finance
preference equity, common equity, debt and leasing. Long-term Finances A business needs funds for capital investments such as fixed assets like plant, machinery, land, building, furniture etc. These assets must be financed with long-term financing sources. The chief financial officer (CFO) is usually responsible for making suggestions to the senior management and board of directors related to…
Identify and Evaluate the Sources of Long-Term Finance Available to the Company
Thirdly, the result from the previous estimation will be analyzed. Finally, this study will give recommendation on how the project should be financed if the board of director decides to carry out the project. TASK 1: Estimate the Weighted Average Cost of Capital for Made-Up PLC The author will now undertake the estimation of the company’s weight average cost of capital (WACC) by estimating the…
Sources in Accounting
Scholarly journals prove to be the best publication genre for researching accounting-related problems since it relays concrete information that stays within the focus of the subject matter. Accounting is one of the oldest disciplines concerned with collecting, analyzing and communicating economic information. Information analyzed is usable in making decisions and plans of an enterprise by…
International Business Management Control- International Business and finance (All instruction are available under order instru
This is helping the individuals to know the events that are happening outside their home land. This increased awareness of the individuals is leading to the increase in the international trade and also the number of business that are running outside the domestic land. This shows that the economies all around the world are closely linked. In order to sustain in the global market, it is very…
'Effective Finance Management in Small Business Restaurant in Ireland'
The literature review section reveals a comprehensive discussion on financial management and its role in small restaurant business. The role of The Restaurant Association of Ireland has been also included in order to several its contribution in context of financial management. The research methodology section has evaluated the ways of data collection for this study. For this research,…
Business finance-2
In order to spread risks, most investors diversify by investing in more than one type of security or portfolio. It should be noted that investors like returns but at the same time dislikes risk and uncertainties (Sharpe, 2007). Though financial market has significant rewards and benefits, it is very complex and very volatile, thus critical analysis is required in risk evaluation so that the…