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Business Scenario : Essay

Added on - 23 Nov 2020

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BUSINESS SCENARIO FORINDIVIDUAL REPORT
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Source of finance................................................................................................................12.An evaluation of various investment appraisal techniques................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
INTRODUCTIONBusiness decision are mainly based upon effective management and analytical skills. Thereis a business case scenario provided regarding expending the business scale form its currentlevel. Zylla Limited operates various ferries that suppliesriver crossing services for people,vehicles and goods across a river. Business is growing very well and considering the growth ofthe business managers of the company are seeking to expand the ferries to cater for the increaseddemand (Mayer, Breun and Schultmann, 2017). Management has made a decision to buy a fewferry to meet its future requirements organisation is required to generate funds for acquiring theferries and working capital requirements of the expansion. This reason also requires to managethe funds. Viability of the project is analysed by applying investment appraisal techniques whichare defined in this report.MAIN BODY1. Source of financeAn organisation can arrange finance from various sources such as : short trem and longterm source of finance. Zylla can also arrange funds from thses two sources so that it can collectfunds for the acquisition of the ferry and for the company's working capital needs.Short term source of finance:Bank credit :To arrange short trem finance bank credit is a suitable source for thecompany and Zylla can borrow funds from the commercial banks. So that it can arrange fundsfor the acquisition of the ferry and for the company's working capital needs. When bank credit isgranted than orgnisation gets a rigth to draw the amount of credit at on time or in stallments asand when required. It can be gramted in the form of loans, overdraft, discounted bill etc. As aresult coprporation can expand its business because it will not worry about the finance.Customer's advance :It is very popular source of short term finance for orgasnisastionsand in it businessmen insist their consumers to make some payment advance. So Zylla canarrange fund by taking advance from those consumers who are provide regular business to thecorporation. So it can arrange funds for the acquisition of the ferry and for the company'sworking capital needs.Long term source of finance:1
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