logo

Business Scenario for Individual Report

   

Added on  2020-10-22

7 Pages1423 Words195 Views
BUSINESS SCENARIO FORINDIVIDUAL REPORT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Short term and long term sources of finance.....................................................................12. Evaluating different investment appraisal techniques for assessing viability of acquisitionand operation of new ferry.....................................................................................................2CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5

INTRODUCTIONZylla limited is the company which operates number of ferries that providers crossingservices such as river crossing for passengers, goods across rivers. The organisation is planningto buy a new ferry due to increased demand. This report will include the sources of funding suchas short term and long term sources. Also, it will provide with various investment appraisaltechniques to identify the viability of the project.TASK 41. Short term and long term sources of financeZylla Limited should uses sources of finance for funding acquisition of ferry and withrequirement of working capital are categorized in two types such as:Short term sources of financeTrade credit: This is referred as very important source of working capital which isextended or produced with business. It could be elaborated as delay of payment which is directlypermitted through raw material's suppliers and creditor against goods purchased through him(Yacus, Esposito and Yang, 2019). It is highly dependent on two things such as competition andcustoms and other is credibility of buyer with perspective of position of liquidity, past paymentrecords and ability for generating margin.Consumer credit: In various types, suppliers or manufacturers insist there customers foradvance in particular case of big or special orders. It frames part of product's price ordered asconsumer tends for full price as this finance is free through interest.Accounts receivable financing: With this context, financing organization obtainsaccounts receivable through money or customer as advance on security on its receivable. Insimple words, it is referred as method of obtaining credit through pledging book debts.Long term sources of finance Equity capital: It is also replicated as owned capital sourced through organisation'spromoter or through public with issuance of equity. Generally, business is started with promotersthrough upbringing capital for any small venture or startup. There is absence of burden ofrepaying instalments and interests such as borrowed capital (Sources of Short-Term and Long-Term Financing for Working Capital, 2018). With this context, risk related to bankruptcy isdecreased and business at initial stage of infancy prefer owned or equity capital.1

End of preview

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

Related Documents
Evaluation of Investment Appraisal Techniques for Funding Acquisition of Ferry
|8
|1415
|81

Short and Long Term Sources of Finance and Investment Appraisal Techniques
|8
|1524
|66

Business Scenario : Essay
|6
|1340
|101

Sources of Finance and Investment Appraisal Techniques for Acquiring a New Ferry
|7
|1278
|77

Assessing Funding Sources and Viability of Ferry Acquisition for Zylla Ltd
|8
|1287
|49

Financial Decision for Zylla Limited: Short and Long Term Sources of Finance and Investment Appraisal Techniques
|8
|1340
|177