Got a tricky question? Receive an answer from students like you! Try us!

Manging Financial Resources and Decisions - Assignment Example

Only on StudentShare
High school
Assignment
Finance & Accounting
Pages 5 (1255 words)

Summary

Managing Financial Resources and Decisions Managing Financial Resources and Decisions PART A- 1. The decision regarding choosing the suitable source of finance depends upon various factors like the need for which funds are required, the duration, purpose and cost of the source of finance…

Extract of sample
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 involves payment of interest to the banks. On the other hand specific assets can be funded by hire purchase and leasing which will involves rental payments to the lessor. The company can also use its trade debtors for short term source of finance which could be done by factoring. This could involve an amount of payment to the factoring company and in some cases loss of reputation as the factoring company may not treat the debtors well. (DRANSFIELD. 2004) PART A- 2. Case I: Mr. Singh needs finance to fund the premises and start up his business. ...
Download paper
Not exactly what you need?

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)
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)
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)
Financial Resources Management Assignment
Assumptions There is an already decorated room that will save the department on the cost of building and decorating. The university has the required resources to fund the project comfortably. Plans Investing in this project will cost the university in the short term, but the benefits will come in the long term use of the room. This can be seen when the students begin to make full use of the facility is when we will see its benefits. As usual, costs will have to come before the benefits of the project are visible for all to see. Like any other venture, the project will need sufficient financing…
3 pages (753 words)
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)
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)
Managing Financial Resources on Tesco and Sainsbury
Both the companies Tesco and Sainsbury are a retail giant multi-chain retail stores. Both the companies are companies have achieved profitability in the financial year 2013. Looking at the financial statement both the companies are in the relatively safe position in terms of profitability. On the overall Sainsbury has a better profitability margin than Tesco. With regards to the Liquidity ratio both the company are in a similar position. Both the companies should look at improving their financial performance to improve their return to the shareholders. Tesco PLC is a multinational grocery…
6 pages (1506 words)