This report identifies the sources of finance available to a variety of businesses along with the implications of using these types of sources. Also the report assesses and considers the suitable sources of finance on behalf of a fictional financial consultancy firm called ‘Fast Forward’ and assess the costs of having a variety of diverse sources of finance. In addition the report explains why it is imperative for businesses to conduct financial planning as well as indicating what information requirements are mandatory for a variety of decision makers. Finally the report examines a selection of financial statements and suggests the most suitable financial statements for different organisations. This report is part of the BTEC Higher National Certificate series by the author and relates to Unit 2 - Managing Financial Resources.
Table of Contents
- Introduction
- Sources of Finance
- Sole Trader
- Owner's Capital
- Bank Loan
- Partnership
- Trade Credit
- Hire Purchase
- Private Limited Company
- Debt Factoring
- Retained Profit
- Sole Trader
- Costs of different sources of finance
- Financial Planning
- Information needs of different decision makers.
- Impact of finance on financial statements
- Profit and Loss Account
- Balance Sheet
- Appropriate financial statements for different businesses
- Conclusion
Objectives and Key Themes
This report aims to analyze different sources of finance available to various types of businesses, assess their implications, and recommend appropriate sources for a client. The report also investigates the importance of financial planning, the information requirements of decision-makers, and the impact of finance on financial statements.- Sources of Finance for Different Business Structures
- Implications and Costs of Finance Options
- Financial Planning and its Importance
- Information Requirements for Decision-Making
- Impact of Finance on Financial Statements
Chapter Summaries
Introduction
The report introduces the purpose of the study, which is to explore the various sources of finance available to businesses, assess their implications, and provide recommendations for suitable options. The report also highlights the importance of financial planning, information needs of decision-makers, and the impact of finance on financial statements.Sources of Finance
This section delves into different sources of finance available to various business structures, focusing on sole traders and partnerships. It analyzes the advantages and disadvantages of each source, including owner's capital, bank loans, trade credit, and hire purchase.Costs of Different Sources of Finance
This section explores the cost implications associated with different sources of finance, providing insights into the financial burden each option may carry for a business.Financial Planning
This section underscores the significance of financial planning for businesses and outlines the information needs of different decision-makers involved in the financial planning process.Impact of Finance on Financial Statements
This section examines the impact of financial decisions on key financial statements, including the profit and loss account and balance sheet. It highlights how these statements reflect the financial health and performance of a business.Keywords
The primary focus of this report is on the financing of businesses, exploring various sources of finance available to different structures, examining their implications and costs, and emphasizing the importance of financial planning. Key concepts include financial statements, decision-making, and the impact of finance on business performance.- Citation du texte
- Amritpal Hayre (Auteur), 2013, Managing Financial Resources and Decisions, Munich, GRIN Verlag, https://www.grin.com/document/288166
