Report on Sources of Finance : Assignment

Added on - 06 Jun 2020

  • 15

    pages

  • 3991

    words

  • 14

    views

  • 0

    downloads

Showing pages 1 to 4 of 15 pages
Managing Financial Resources
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Identify appropriate source of finance..................................................................................11.2 Assess the implications of different sources of finance........................................................21.3 Evaluate appropriate sources of finance for business project...............................................32.1 Analyse cost of various sources of finance...........................................................................32.2 Explain the importance of financial planning.......................................................................42.3 Assess the information needs of different decision makers..................................................52.4 Explain the impact of finance on financial statement...........................................................53.1 Analysation of budget and appropriate decisions.................................................................63.2 Calculation of unit cost and pricing decisions using relevant information...........................73.3 Viability of proposal using investment appraisal techniques................................................7TASK 3............................................................................................................................................84.1 Main financial statements.....................................................................................................84.2 Comparison of appropriate formats of financial statements for different type of business. .84.3 Interpretation of financial statements by using ratio and comparison internally andexternally.....................................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONFinance is an essential need for every organisation in order to operate their businessoperations in smoothly manner to achieve growth and success in competitive business world.There are various sources through which the business can raise funds in the time of need such asinternal sources and external sources (Financial planning meaning and definition, 2017). Thisassignment report covers the different sources of finance suitable for foreign and common wealthoffice along with its implications. The project also summarised the analysis of cash budget whichwill be helpful in formulating an effective decision. Along with this different financial statementsare also mentioned which show true financial position of company. In addition to this variousratio are also used to identify the company's accurate financial position in terms of profitability,solvency and liquidity.TASK 11.1 Identify appropriate source of financeThere are different sources of finance through which the company can raise its capital.Some of the sources are given as below:Internal sources of FinanceRetained earnings: It is certain percentage of profit which is retained by company for thepurpose of meeting future contingencies (Integrated reporting, quality of management, andfinancial performance, 2012). It is considered as most effective sources of finance which help incompany in raising its capital.Sale of fixed assets: By this method, the company can raise its capital through selling itsold and obsolescent assets which are of no use to the company.Angel Investors: By using this type of source the company can raise funds from theirrelatives and friends for different period of time at reasonable rate of interest which help them inmeeting the financial needs.External sources:Issue of Shares: This is the easiest method through which foreign and common wealthoffice can raise its finance. Through this method, the company invites general public andinvestors to purchase their equity shares.1
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document