Business Finance: Sources, Working Capital, Risk, and Corporate Restructuring

Business finance

Table of Contents
Introduction......................................................................................................................................3
Key sources of finance.................................................................................................................3
Key elements of working capital..................................................................................................4
Exposure to risk...........................................................................................................................5
Corporate restructuring activities of ASOS plc...........................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
The following report focuses on Business Finance. Business Finance refers to raising money and
properly managing the points with the help of Management and business organisation (Klopotan
and et.al 2018). Business Finance also includes major financial decisions for the company. In this
report company calls ASOS plc has been taken. ASOS plc is a British online fashion and
cosmetic retailer. Its Headquarter is situated in London. Clothes, shoes, accessories and beauty
products are the major products of this company. Report States about key sources of finance for
the company apart from this various key elements of working capital is being discussed in this
report.
Key sources of finance
Images of sources of finance for any business are equity debentures term loan working capital
loan and venture funding but these sources of finance can be used in different situations apart
from this their sources of generation depends on the period ownership and control in the
company. ASOS plc implements various kinds of sources to get funds
Equity share
Equity share are the main sources of finance for ASOS plc as it provides different rights of
voting share profit to the investors (Kraemer and et.al 2019). Which company has issued various
types of share capital such as authorised issued subscribed paid up and it also provide right bonus
to the shareholders. Equity shares are the first choice of ASOS plc to collect fund from different
high net worth and retail investors. Earlier company has issued initial public offering to get listed
on London stock exchange through which this company get good subscription and funding for
further growth.
Debentures
Debentures are the way of borrowing money by the company on a fixed and floating rate of
interest without keeping any asset of the company in the form of securities (Ylhäinen, 2017).
This is one of the convenient ways of getting money on long-term basis without putting any other
side of the company. ASOS plc has issued debentures to get long term finance so that company
can go for further expansion. Avengers are generally written contract which states that company