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The Source of Finance Used in The Business

Added on - 03 Feb 2020

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MANAGING FINANCIALRESOURCESANDDECISION
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1...........................................................................................................................................11.2...........................................................................................................................................21.3...........................................................................................................................................32.1...........................................................................................................................................42.2...........................................................................................................................................52.3...........................................................................................................................................52.4...........................................................................................................................................63.1...........................................................................................................................................83.2...........................................................................................................................................93.3.........................................................................................................................................10TASK 2..........................................................................................................................................124.1.........................................................................................................................................124.2.........................................................................................................................................124.3.........................................................................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
Index of TablesTable 1: Evaluation of sources of finance........................................................................................3Table 2: Extract of balance sheet.....................................................................................................7Table 3: Extract of balance sheet.....................................................................................................7Table 4: Extract of profit and loss statement...................................................................................7Table 5: Receipt account..................................................................................................................7Table 6: Extract of balance sheet.....................................................................................................8Table 7: Extract of profit and loss account......................................................................................8Table 8: Sales budget.......................................................................................................................8Table 9: Production budget..............................................................................................................9Table 10: Cash budget.....................................................................................................................9Table 11: Calculation of cost.........................................................................................................10Table 12: Calculation of selling price............................................................................................11Table 13: calculation of cash flows...............................................................................................11Table 14: payback period...............................................................................................................12Table 15: NPV...............................................................................................................................12Table 16: Ratios of Marriott international.....................................................................................14
INTRODUCTIONThe complex structure of the business can be simplified by using various financialresources to fund the requirement of the business. The role of financial matter has increases as itsdemand has increases with the increasing scope of industry. This project is about definingvarious methods to understand the worth of finance for an enterprise. The sources of financesused in the project are according to an entrepreneur as they are starting their business on smallscale. It also uses various budgeting techniques to forecast the future requirement of cash andother resources that are utilised in the firm. Ratio analysis is that technique which helps anenterprise to determine their financial performance.TASK 11.1Winning contest-It is uniq1ue an entrepreneur can adopt in order to fund their businesswith less amount of business risk(Jorgensen and Rotter, 2016). In this approach anentrepreneur can participate in various business contests where the basic requirement ofcontestant is to prepare product or business plan to show their ability and earn money bywinning the contest. The innovation and creativity of a person will also recognise by thejudges which provides a name to an entrepreneur in front of other peoples.Govt. programs- The UK Government support new start up that is the reason theylaunched different schemes and programs to promote the new entrepreneur. They can beencouraged by providing financial support as the enthusiasm of an entrepreneur to bringout their inner potential(Ehrhardt and Brigham, 2016). The grants provided bygovernment have no legal consequences to repay within a certain time duration.Business accelerators- Early stage start ups are also regarded as incubators andaccelerator programs provided existing business enterprise as a funding option to them.The knowledge power and existing skills and capabilities of existing businesses areutilised by new comers to enter into new estate. Funding is given by existing industryexperts to all those persons who wish to enter in the dominant business world.Loan from Micro finance-It is beneficial method for new comers as they can get loanfrom non banking financial corporations which is alternative of bank loan(Hosain, 2016).1
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