Managing Financial Resources in Firms
Added on 2020-01-07
20 Pages5315 Words157 Views
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MANAGING FINANCIALRESOURCES
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 various source of finance of the business..............................................................................11.2 Implication of various sources of finance.............................................................................21.3 Proper evaluation of the source of business finance.............................................................32.1 Cost of different sources of finance......................................................................................42.2 Importance of financial planning ........................................................................................42.3 Information require in the assess of decision making...........................................................53.1 Effect on the finance in the financial statements..................................................................63.2 Budget analysis and make decision......................................................................................83.3 Investment techniques with with recommendation and conclusion ....................................9TASK 2..........................................................................................................................................104.1 Financial statement its objective ,purpose and uses of J. sainsbury plc..............................104.2 comparison of the format of different company financial statement..................................114.3 Different ratios of the financial statements ........................................................................14CONCLUSION .............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONThe project report is about the financial resources of the businesses are managed in themedium or large size organisation. Under which the source of finance and the uses of it in thebusiness are highlighted and one of the leading company TESCO PLC of England which is theretail company(Ahlstrom,Chen and Yeh, 2010) . How they are managing its financial resourcefor the development of the company. The source of fund availability to manage the expenses andthe paid the liabilities and show the growth through achieving the goals of the organisation. Italso contain the implication of the finance to the company and the decision related with thefinancial perspectives of the business operation ,so that the desire outcome for the company canbe generated. The main objective of this report is to show the impact of finance in the businessand critical evaluation of the financial information which affect the different company ofEngland. The major source of data collection is from the various references of the books andjournal which give the idea about the financial management.TASK 11.1 various source of finance of the businessFinance : It refers to the money which is in the liquid resources of the individual , groupand the government or any other business enterprises. funds are the important part of thebusiness without which an organisation can not survive for the long period(Altenburg andPegels, 2012) .there are two sources of finance available to the TESCO PLC ▪Short term : These are said to be the shortest finance which are available to thebusinesses entity that must be paid within the one year time limit.▪Long term : The another is for the long period which are more than one year ofthe time limit .Another are internal and external sources :▪Internal sources are those funds which available inside of the company. The profitcan be used to re invest in the business as a growth and expansion of theorganisation. In this the company if need to pay the liabilities they can sell theassets to free the cash and maintain the operation (Ameen, 2011).▪External sources are the those which are come from the outside of the business. Itis divided into two parts:1
1. Short term External sources : It covers the overdraft facility of the banks which are allow tothe business and the trade credit to the supplier for the delivery of the goods and the factorywhere the company sell its detail invoice to the banks(Aras, Aybars and Kutlu, 2010).2. long term External sources : It includes the owners who invest in the business of the Tesco plcand provide loan facility to the company and they have the option of leasing shares , debenture,retained earning of assets to pay of the debts. The company may issues debenture as a loan.1.2 Implication of various sources of financeFinance are the honour to the fund of the business. But to every business like Tesco plc isbased on the aspect that the planning , direction to use the funds in such a manner that it shouldgive more benefit to the organisation(Boiral, 2011). In the case of Tesco plc they using theproper decision making to use the fund by introducing the new variety of the products to itscustomer with the discount and feature with better quality. But at the same time it has some ofthe implication are also associated with the companies outcome because of improper planningand co ordination in the financial investment. The most of the company depend on the desire result , outcome they are getting from the use offund in their activity. There are some of the impact of finance in the business operation of theTesco plc :1.Growth : It the company is not able to maintain the funds in the proper mannerthen it will directly impact the growth of the business. The funds should beutilised in proper manner to enter into the new market for the expansion.2.Cost cutting : It is seen many a times that the expenses of the company are overvalued which leads to the company to cut the cost to minimise the risk of thebusiness.3.Investment in personal : the most difficult for the company in hiring of the labourfor the operation which is to costly(Broadbent, M and Cullen, 2012). In the caseof Tesco plc it hiring cost is more which is directly impact the company becausethey have to provide training and development as per the knowledge and skill ofthe labour.Financial implication :Equity Financing : In starting stages public offering & Offering Equity. Under thisbusiness can not raise capital by public offering.2
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