logo

MFRD MFRD 1 OVERVIEW 1 Task 11 1.1 Types of economics

   

Added on  2020-01-21

18 Pages5086 Words495 Views
MFRD
MFRD MFRD 1 OVERVIEW 1 Task 11 1.1 Types of economics_1
Table of ContentsMFRD..............................................................................................................................................1OVERVIEW....................................................................................................................................1Task 1...............................................................................................................................................11.1 Types of economics..........................................................................................................11.2 Significance of different mode of raising capital.............................................................21.3 Best sources that can be used by restaurant ....................................................................3Task 2...............................................................................................................................................42.1 Value of various origin of business..................................................................................42.2 Significance of planning the activities in advance ..........................................................52.3 Various information need by decision maker of the company.........................................62.4 Effect of various sources on fiscal documents.................................................................7Task 3...............................................................................................................................................83.1 Analyse of Blue Island restaurant cash budget.................................................................83.2 Computing of Unit cost....................................................................................................83.3 Selection of best proposal by using various investment techniques.................................9Task 4.............................................................................................................................................104.1 Financial statements.......................................................................................................104.2 Various statements prepared by different organization..................................................114.3 Computation of different ratios in order to examine which restaurant financialperformance is good.............................................................................................................11INTERPRETATION......................................................................................................................13REFERENCES..............................................................................................................................15
MFRD MFRD 1 OVERVIEW 1 Task 11 1.1 Types of economics_2
OVERVIEW Finance is the governance and allotment of the funds and resources in every section andproject with an aim an achieve the desired objectives. In simple words it can be interpreted that itis the procedure of allocating funds in a balanced way in every project.In this project report different modes of finance that can be used by the Sweet Menu toincrease its capital are depict. These sources will help the company to raise finance in order tofulfil various requirements. Along with this, expenses that needs to be bear by the companywhile increasing its capital through this sources are also mentioned. Benefits of planning fiscalactivities in advance are discussed. Besides this, various information required by the decisionmaker are also discussed.Along with these, receipt and payment account of Blue has been examine with an aim tofind its current financial performance. Further, the income generated by the organisation on saleof everyday meal is interpreted. In addition to this, an effort has been made to find out the bestproposal that can prove to be beneficial for Blue Island restaurant. Lastly, financial ratios of boththe restaurant are premeditated with the purpose to find out which restaurant fiscal performanceis better. Task 11.1 Types of economicsDifferent modes of finance are available within the economy by using which everyorganisation is able to increase its capital to fulfil various needs and wants. Thus, few resourcesare presented within the organisation and some are required to be raised from outside the firm. Internal sources of financeSale of fixed assets: - By selling the fixed assets any company can increase its finance. Inlieu which company sell out its aged assets that are of no use longer?Friends and family: - An organisation can increase its capital by adoption it from itsangel investors. (Barnes and Pancost, 2010). It is cost effective source by which Sweet can hikeits capital. The reason behind this is that company is able to get loan from the friends and familymembers at low rate of interest.1
MFRD MFRD 1 OVERVIEW 1 Task 11 1.1 Types of economics_3
Retained profit: -It is a part of money that is kept by the company after paying all itsexpenses. This money is kept by the company in order to meet up any sudden uncertainty thatcan occur in upcoming year.External sources of financeLoan from financial institution: - By using this method an organisation is able to cope upall its requirement of capital. Through this source firm borrow fund from the bank by simplypaying the interest.Issue of shares: - This source is used to fulfil age long objectives by issuing shares in themarket. In this method, the firm issues the equity shares to the general public with the aim toincrease its capital (Bellas, Toudas and Papadatos, 2007). Moving on with source will help thecompany to meet up its long run objectives. Leasing/hire purchase: - in this, the organization can use the assets or property withoutpurchasing it. Company use the assets by simply paying instalments. 1.2 Significance of different mode of raising capitalOriginLawful featureDilution/ownershipBankruptcyIssue of sharesCompany is required toconsider alegitimateprocedure when they areissuance the shares to thegeneral public.Possession of the shareissued changes as andwhen the legal procedurehas been completed.If condition of insolvencyoccur than in that casefirm is not required topay dividend.Bank loanLawful process is requiredto be considered by theorganisation at the time ofborrowing fund from thebank (Bentz, 2007).Possession of the fundborrowed by theinstitution changes. Bank seizes the collateralsecurity provided by thecompany.Leasing/Hire purchaseAsimplyagreement/contract ismade between both theparties with the purpose touse the asset for a specificperiod of time withoutOwnership changes onlyafter all the instalmentsare paid by the company.In case of bankruptcy,company is not able topay the instalments forthe quality hired.2
MFRD MFRD 1 OVERVIEW 1 Task 11 1.1 Types of economics_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment on the Sources of Finance
|17
|5168
|205

Assignment Of Finance | Sweet Menu Restaurant| Blue Island Restaurant
|22
|5590
|99

Managing financial resources and decisions : Assignment (mfrd)
|16
|3955
|160

Source Of Finance in Sweet Menu Restaurant
|17
|5272
|54

Analyzing Managing Financial Resources Decisions Assignment
|16
|5126
|76

Source of Finance in Sweet Menu Restaurant | Report
|18
|5027
|39