Short term & Long term sources of fund to the acquisition of Ferry & for organisation working capital needs

Business Scenario for
Individual Report
(TASK 4)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
1.Short term & Long term sources of fund to the acquisition of Ferry & for organisation
working capital needs..................................................................................................................4
2. Different investment appraisal techniques & recommending the viability of the acquisition
& operation..................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
It is essential for a business association to ensure that financial resources is available for
the smooth functioning of activities of an organization. Finance plays a vital role as compare to
other resources (Alkaraan, 2015). The companies collect funds from various sources of funding
in order to enhance business activities and gain higher profits. In the present report, Zylla is
chosen as a base company. The company offers number of ferries that is it offers river crossing
services. In the present time, the higher authorities of company to want to expand its operations.
For this, it is plan to acquire new ferries. The file covers various sources of funding along with
investment appraisal techniques.
MAIN BODY
1.Short term & Long term sources of fund to the acquisition of Ferry & for organisation working
capital needs.
In the present business situations, there are different options for companies to get funds
funds for their business activities and to expand their operations. It is totally rely on the form of
organisational activities that by which source company get finance (Ware, 2017). In addition to
this, there are mainly two forms of sources of finds which is mentioned below with relation to
company:
Short Term sources: In these type of source, company get finance for short time frame
or for a year only. The senior management of Zylla limited get finance from short term sources
which is discuss below:
 Bank Credit: Most of the banks provide finance to business associations within the short
span of time that is considered as credit given by bank. Bank give credits in different
forms which are as follows:
a) Loan: The loan is sanctioned by banks to business entities in returns of security or assets.
With this, the bank charge some interest amount which is added with the principal amount and
paid by the companies (Corsatea, Giaccaria and Arántegui, 2014). Bank loan is secured as well
as convenient source to take funds at lower rate of interest. With reference to Zylla, the company
can take loans from banks and fulfil their financial needs as well as working capital requirement.