The Sources Of Finance And The Impacts Which Will Occur...

Introduction This essay will be covering the sources of finance and the impacts which will occur when starting up a new business. This essay will be covering financial impacts within an organisation and also the advantages and disadvantages on source of finance. Also what source should the client use for their new business idea. Scenario A client wants to start a retail business selling handmade birthday cakes. The client will manufacture the cakes in house. The client also plans to sell the cakes online and in a small shop which is based in Uxbridge. The client is currently uncertain whether to set up as a sole trader, partnership or as private limited company. The client is currently confused about the sources of finance that could†¦show more content†¦Partnership: Partnership business is when two or more people are involved in the business they put in the money their skills and other resources and share profit this source of finance is more suitable for a company if they want office space and more features for their company. For example a law firm needs a property for them to meet their clients for a law firm property they will need to pay it off by mortgage. Limited Companies: Limited companies are incorporated which means that the companies have their own legal identity which means they can sue or own assets in their own right. Limited companies are divided into parts called shares. This means who ever owns one or more of these are called shareholder. When a company is limited is then means that the companies than have their own legal right which means that their owners are not personally liable for the firms debts. Private limited company: Private limited company is different to limited company in private limited company the funds are borrowed through family and friends or personal investments. This option is good for a small company as in public limited company there will be debts where as in private limited company there will be less pressure in giving the money back but it may cause problems in between the relation in family. Implication of the different source of finance. Overdraft: Bank overdraft can be a good source of short term finance helpShow MoreRelatedDifferent Definitions Of Gestalt And Holistic Essay1732 Words   |  7 Pagesawareness to emerge from the existing business framework. A good basis for possibilities and potential are only possible if we have a good grip on reality. Reality shifts by widening, deepening, and revealing new or alternative ways of thinking, perceiving, and therefore doing business. Within the framework is a uniquely personal theory of change waiting for discovery, a new framework for something to be unfolded and utilized for a successful outcome. Change occurs when an individual, group or organizationRead MoreEffects Of The Rise And Fall Of The Oil Prices1123 Words   |  5 Pagesglobal markets today. Crude oil is defined as a nonrenewable resource which occurs naturally. It is an unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals hence it plays a very crucial role in any economy. The demand for oil has a number of important facts that we can look at starting from 1980 to 2008 where the world’s demand increased by 40%, from 60mRead MoreThe Effects Of Climate Change On The United States981 Words   |  4 PagesOver 14 billion dollars have been spent on levees in New Orleans , yet hurricanes continue to cause damage. As storms continue to grow stronger, that figure will continue to rise. Though the destruction of climate change can be seen globally with storms, wildfires, and oil depletion, Popular support for environmental movements and policies is minimal. The numbers needed to make a difference are not there. From 2008 to 2010, the number of Americans who believed in climate change dropped to 57%. WhileRead More21200 Words   |  5 Pagesstage entrepreneurial activity, which consists of businesses that are just being started and businesses that have been in existence for less than three and one-half years. While the high rates of entrepreneurial sta rt-up activities occur in low-income countries, where good jobs are not plentiful such as brazil, china, Argentina. Low rates occur in high-income countries, such as Germany, French, USA.   also identifies whether its respondents are starting a new business to take advantage of an attractiveRead MoreBtec First Diploma Unit 163703 Words   |  15 PagesBTEC First Diploma In BUSINESS Level 2 Vocational Assignment Unit 16 Business Enterprise SCENARIO: P1. Explain how knowledge of personal strengths and weaknesses can be applied to preparing for and contributing to a business When setting up a business you need to have passion, confidence and knowing your skills set. The business I intend to set up is a Window cleaning business. There are certain things needed to follow to set up me business and they are Strengths, WeaknessesRead MoreCase Study : Accounting Principles At Hdr1308 Words   |  6 Pagesinformation about an organization’s business activities (Wild, 2012). When running a business, accounting is a vital key to how it is managed and ran. Accounting is used to communicate data that helps people make good financial decisions. In business it is used to provide data of the company’s finances pertaining to which direction the company is going. Every company relies on good accounting practices to ensure that the business is successful and making money. Business Style A Corporation is an independentRead MoreSocial Media And Its Effect On Business1388 Words   |  6 Pagesmarketing approach, the effect on big brands and small businesses, Facebook’s role in a business and all the tools and strategies they offer will be presented, analysis of the businesses who include Facebook as a marketing key in their business. Comparative data will show the competiveness and efficiency between Facebook and Twitter. Facebook contemporary marketing approach is crucial. Today’s technology and business environment are forcing organizations to restructure their processes and behavior. ForbesRead MoreManaging Financial Resources4675 Words   |  19 PagesTable of Contents Choosing a Financial Source 1. Sources of Finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Page 3 2. Term Length of Funding†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...Page 5 3. Venture Capital Sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....Page 5 Decision Making 1. Team Building†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...Page 6 2. Cost of Finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..Page 7 3. Flow of Cash†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..Page 8 4. Balance Sheet†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.Page 9 Financial Performance 1. Financial Statements†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreIdentifying The Different Ways Online Identity Theft1462 Words   |  6 PagesIdentify and discuss the different ways online identity theft can be achieved by a cybercriminal Identity theft is when your personal details are stolen. Identity theft occurs when someone steals your personal information with the intention to access bank accounts for example, or commit many other crimes in your name and at your expense. Identity theft is a growing threat in the uk which is increasing at a rapid rate. It is said that it could be one of the leading threats in the coming years. AnalysisRead MoreDepartments of a Business Essay2146 Words   |  9 PagesDepartments of a Business Within a business there are the different departments: marketing, finance, human resources, and administration. Each of the departments have there own aims. These aims can lead to a businesses success or failure depending on whether the aims/objectives are met. Some departments have the same aims as the others, for example finance and human resources may both have the aim