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FinanciaTools and Techniques of Clariton- Report

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Added on  2020-01-28

FinanciaTools and Techniques of Clariton- Report

   Added on 2020-01-28

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FinanciaTools and Techniques of Clariton- Report_1
Table of Contents
FinanciaTools and Techniques of Clariton- Report_2
INTRODUCTION Financial resource management may be defined as a process which is highly concernedwith making optimum use of resources. It lays high level of emphasis on developing highlycompetent framework which directly aid in the growth and success of firm. Moreover, withouthaving sound framework it is not possible for business unit to exert effectual control on the levelof expenses and monetary resources. Thus, by ensuring effective management of monetaryresources company can execute its business plan more effectively and efficiently. Thisassignment is carried out on Clariton Ltd that provides customers with unique or antique items.By considering the market trend and customers demand four partners have taken decision inrelation opening another store in UK. In this, report will shed light on funding sources which willassist company in implementing the expansion plan within the suitable time frame. Besides this,report will provide deeper insight about the financial tools and techniques that can be undertakenby Clariton to assess the viability of project. TASK 11.1 Identifying the sources of finance Unincorporated business: Partnership, sole trader etc. comes under the category ofunincorporated business who do not possess a separate legal entity from its owners. Sources of financeDescriptionSelling of assets By taking decision in relation to selling ofunused assets Clariton Ltd can get finance.Moreover, now as time passes assets becomeobsolete. In this way, by selling such kind ofassets business entity can generate fund andcan make use of it in other productive activities(Zsidisin, 2016). Use of profitTo capitalize all the opportunities business unitplaces emphasis on retaining some amount ofprofit rather than spending. In this case, bymaking use of profit firm can explore businessoperations.
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Incorporated business: Companies which are registered according to specific laws andlegislation considered as incorporated business. Hence, incorporated business organizations canraise fund by using the following financial sources are: Sources of finance Description Issue of sharesClariton ltd can meet its financial requirementsby launching an IPO and thereby offeringshares top people. Moreover, now investorsprefer to invest money which offers highreturn in the form of dividend (Van der Stede,2016). Thus, by offering shares company cangenerate enough funds and thereby wouldbecome able to execute business plan. Venture capitalistsIn the present times, there are several venturecapitalists are available who are ready to givemonetary assistance to the firm. Hence, byapproaching to the venture capitalists businessentity can generate money for the proper andeffectual execution of business plan. Bank loanFinancial institutions are the major externalsources that helps company in raising fundsto the significant level. (Mochizuki and et.al.,2016). In this way, by framing and presentingeffectual plan Clariton Ltd can obtain enoughmoney. 1.2 Impact of monetary sources on Clariton Antiques Ltd Financialsources Monetaryimpact Impactaccording to thelaws intensity ofcontrol Bankruptcy Internal sources Retained profit In retainedprofit, businessentity s not inposition to offerhigh dividend tothe shareholders(Baurzhan, S.and Jenkins,2016). Hence,when companyNo legalimplications No At the time ofbankruptcyowner getsmoney after thefulfillment of allthe obligations.
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