Task 4 - Business Scenario for Individual Repot

Business Scenario for
Individual Report
(Task-4)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Source of funds for acquisition of ferry and working capital needs.......................................3
2) An evaluation of various investment appraisal techniques and recommendation to the
company......................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Source of funding is a medium from where the company gets some resources to finance
the need of the business. Source of funding includes company's saving and subsidies, credit,
donation etc. that is used to expand the business (Alkaraan, 2017). As Zylla limited operates the
number of ferries and they want to expand the business for that the manager decides to purchase
the new ferry to cater for increased demand. For that company needs the funds for both
acquisition and working capital requirement of the expansion. For that company need both short
terms and long terms funds for the expansion of business.
MAIN BODY
1) Source of funds for acquisition of ferry and working capital needs.
Source of fund is the needed part for the business at the time of expansion thus Zylla
limited collects there funds from both short term and long term sources of finance for acquisition
of the ferry and for the company's working capital needs these are as describes as follows:
Source of Funds for acquisition:
As the Zylla limited wants to expand the ferry business and for that they needs the source
of funds for financing the acquisition (Harris, 2017). It usually arises when company wants to
acquire other company and for that company need both short and long terms source of finance
that is explained as below:
Short term source of funds: These sources of funds are financing the acquisition for a
short period of time less than a year these are as explained below as : Bank overdraft: Zylla limited needs monetary funds for their daily operation which is
arises at between the time gap of collection and payment. Trade credit: The credit that Zylla limited get from their creditors or the suppliers.
 Debt factoring: This is a source by which Zylla limited sell their product at discount.
Long term source of funds: These sources of fund are financing the acquisition for a
long period of time these are as defined as below: Leasing: It helps the Zylla limited at the time of delay in cash, and it is goof financed to
the company. Term loan: These are the loans that Zylla limited get from bank and that secured some of
the company's assets.