Sources of Funding Available to Business and Industries

FINANCE IN HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Sources of funding available to business and industries.......................................................1
1.2 Measure the contribution made by a range of methods for generating income....................2
TASK 2............................................................................................................................................2
2.1 Elements of cost, gross profit percentages and selling price for the product........................2
(B) Gross profit percentage and selling price.............................................................................3
2.2 Methods of controlling stock and cash in a business and service environment....................3
TASK 3............................................................................................................................................4
3.1 Assess the sources and structure of the trial balance............................................................4
3.2 measure business accounts, adjustments and notes...............................................................4
3.3 The process and purpose of budgetary control.....................................................................6
3.4 Variance analysis from budgeted and actual figures offering suggestion for future
management................................................................................................................................6
TASK 4............................................................................................................................................7
4.1 calculation and analysis of ratio to offer a consistent interpretation of historical business
performance.................................................................................................................................7
4.2 appropriate Future management strategies for a given business and service operation........7
TASK 5............................................................................................................................................8
5.1 Categorise costs as fixed, variable and semi-variable for a given scenario..........................8
5.2 Calculation of contribution per product/customer and explain the cost profit/ volume
relation.........................................................................................................................................8
5.3 Short term management decision based upon profit loss potential and break-even
calculation...................................................................................................................................8
CONCLUSION................................................................................................................................8

REFERENCES..............................................................................................................................10

INTRODUCTION
Finance is one of the important resources with in organisational context. Management
and control of financial resources is covered in financial management. Concept of financial
resources management is defined in hospitality sector (Xiao, O'Neill and Mattila, 2012). This
project is prepared to explain depth knowledge and practical overview of accounting techniques
which are used to control cost and profit. This helps to understand the control system and income
generation methods. It covers the use of various financial ratios in analysing subject to
interpreter and bifurcate the data.
Methods of pricing and management information are defined in hospitality industry. It
will help to gain a fundamental understanding in the hospitality industry also defined in this
context. Understand the management and operation in order to determine the context.
TASK 1
1.1 Sources of funding available to business and industries
There are type of sources of funds available by which organisation become eligible to
generate funds such as
Funds for New Business:
Personal investment: this is considered a major sources which is invested to generate
funds for personal income and revenues. Funds and cash are invested at initial stage with the as a
capital and utilised for acquiring assets (WangChen and Chen, 2012).
 Advantages: there is no any interest charges and expense need to be paid for
externals or long term debts.
 Disadvantage: expert knowledge and advise remain lack behind in this source
Venture capital: this is also one of the type of funding which is made by investing
private equity with in small growing and developing organisations and firms. Enhancing profit
capability and revenue structure is major motive of this funding (Sahida and et. al., 2011.).
 Advantages: it helps to analyse the entrepreneur skills which build company's
image and investor management support.
 Disadvantages: there is a lake of control is found in this source of funding
Funds Existing Business
Bank loan: this is one of the common source of fund which is generally used by business
and organisations.
1