Describe Sources of Internal and External Finance for a...

Describe sources of internal and external finance for a selected business For a business to run successfully on a daily basis it needs finances. Success comes when a business expands, reinvests and uses human recourses to run. Bentalls need money to run their business effectively and successfully. It needs finance for its daily running of the business for example, paying staff wages, paying bills for electricity and rent, paying taxes on time and ordering stock regularly. For a long term goal, Bentalls would need the finance to expand their business, franchise, buy new equipment and or buy new buildings around the current building to expand the area and possible generate more sales with new renting for high street retailers. Bentalls can†¦show more content†¦Other organisations such as charities and or non-profit organisations cannot route for this direction. Bentalls however can take this procedure very effectively as they are a well-established and profitable business that can take out a large retained profit to reinvest into their businesses. B entalls could use this investment to expand their business as well as gain a larger market by attracting new customers. Fixed assets are another way to convert assets into cash. Any equipment or items such as computers, TV, furniture and vehicles can be converted to cash by selling them. This procedure may be appropriate for as small business to gain quick cash. For Bentalls this procedure may take longer and the amount may not be large enough to invest in. Bentalls is a large business and a large investment is needed to expand the business. Trade credit is a way of short borrowing and or delaying payments to suppliers so that the business cycle for Bentalls can run smoothly. Delaying payments for as long as possible can ruin the relationship between the supplier and the business. This may also affect the sales and discounts that the supplier may offer in the future. For Bentalls this may not be a bad procedure because Bentalls is a large business and its cash cycle can take a while to go around. It is always good to pay the full amount within a month of purchase to avoid badShow MoreRelatedGfsgsdf Hshsdfshfd Sdhgw1479 Words   |  6 PagesCambridge TECHNICALS OCR LEVEL 3 CAMBRIDGE TECHNICAL CERTIFICATE/DIPLOMA IN IT BUSINESS RESOURCES D/502/5409 LEVEL 3 UNIT 30 GUIDED LEARNING HOURS: 60 UNIT CREDIT VALUE: 10 BUSINESS RESOURCES D/502/5409 LEVEL 3 UNIT 30 PURPOSE OF THE UNIT The unit looks at how a range of resources including human, physical, technological and financial resources are used and managed within business. This unit will help the learner to have an understanding of how human resources are managed and ofRead MoreUnit 2 P4830 Words   |  4 PagesUNIT:2 P4 P4: Describe sources of internal and external finance for a selected business. Introduction: In this particular task of the unit I will describe the internal and external finance sources for a particular selected business. In this task I will use the same company as I did before in the previous part of the unit. The name of the company is : Media Markt. In this task we will get to know where money actually comes from to actually create such a big company which is well known of itsRead MoreBtec Level 3 Business Business Enviroment Essay725 Words   |  3 PagesUnit 2: Business Resources – Assessment activity front sheet This front sheet must be completed by the learner (where appropriate and included with the work submitted for assessment Learner name: | Assessor name: | Date Issued: | Hand in date: | Date submitted: | Qualification :BTEC Level 3 National Business | Unit 2 – Assignment 1Business Consultancy | Criteria Reference | To achieve the criteria the evidence must show that the learner is able to: | Taskno | CriteriaAchieved | DateRead MoreUnit 21450 Words   |  6 PagesAssignment brief | Unit number and title | Unit 2 – Business Resources | Qualification | BTEC Level 3 Certificate, Subsidiary Diploma amp; Diploma in Business | Start date | September 2010 | Deadline | December 2010 | Assessor | L.McNeill | CRITERIA COVERED | | | P4, P5, P6, P7, M3, M4, D2 D3. | | | | | Assignment title | The Role of Financial Resources | Purpose: The aim of this unit is to develop learner knowledge of the range of human, physical, technological andfinancialRead MoreP1- bUSINESS UNIT 22223 Words   |  9 Pages Name of Centre: Wrotham School Title of Course: BTEC National Subsidiary Diploma in Business Studies Unit Number and Title: Unit 2: Business Resources Name of assessors: Mr Williams Mr Toher Deadline for completion: Statement of Context: At the core of every organization are the human, physical, technological and financial resources that enable it to function. In this unit you learn the importance organizations place on managing their resources efficiently in orderRead MoreAssignment Help1995 Words   |  8 Pages|Unit Title: |Tutor’s Name: | | | | |Managing Financial Resources and Decisions | | |Assignment Title Number: Read MoreAssignment Help2001 Words   |  9 Pages|Unit Title: |Tutor’s Name: | | | | |Managing Financial Resources and Decisions | | |Assignment Title Number: Read More2014 15 Assignment4484 Words   |  18 PagesSeptember Qualification Unit number and title L3 BTEC National Diploma in Business (Marketing) UNIT 1: The Business Environment Assignment title Working at Business Review In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found. Criteria reference To achieve the criteria the evidence must show that the student is able to: Task no. Page numbers P1 Describe the types of business, purpose and ownershipRead MoreBusiness Resources1984 Words   |  8 Pagesbusiness resuirces BTEC Nationals – Unit: 2 Business Resources Assessor: Sam Ramsay | Internally Verified By: Michele Carman | Criteria Achieved | | Comments Against Target Grade: | | Assignment 1 | P1, P2, M2 | | Assignment 2 | P3, M1 | | Assignment 3 | P4, P6, M4, D3, D1 | | Important ResubmissionWhen you resubmit your assignment, you MUST ensure that YOUR CHANGES are shown in red. Failure to do this is likely to result in your work being missed and your original grade standingRead MoreMarket Research in Apollo Hospitals Dhaka In Order To Decide On Adding a Burn Unit to the Hospital3188 Words   |  13 Pages.........4 Solution of task P2........................................................................................5 Solution of task P3........................................................................................6 Solution of task P4.......................................................................................7 Solution of task P5.......................................................................................8 Solution of task M1.............................. Describe Sources of Internal and External Finance for a... All businesses need money to function sufficiently. Where this money comes from is defined as sources of finance. There are two different types of sources of finance: internal (capital from inside the business) and external (capital from outside the business). New businesses starting up need money to spend in long-term assets such as premises and equipment. They also need cash to pay for materials, pay wages, and to pay the day-today- bills such as water and electricity. In-experienced entrepreneurs often underestimate the capital needed for the everyday running of the business; this is the reason many businesses fail due to cash flow issues even when profitable. Internal sources of finance can be found in existing capital of the†¦show more content†¦It also does not have associated costs, and doesn’t have to be repaid, unlike loans, and finally it has no interest charges. On the other hand, investing into the business may be limited which will constrain the rate at w hich the business expands, as mine and my families resources are limited and wouldn’t meet start-up costs. Investing in external sources of finance can include using bank overdrafts, loans and venture capitalists, all of which my business would use. Bank overdrafts are good because my firm would only need to borrow as much as it requires when it needs it most. But the disadvantage can include it being very expensive and banks can insist being repaid within 24 hours which can be a problem. Therefore this is mainly going to be used for occasional cash flow problems, for example over tight times e.g. January and February. I would also use loans, as these can be secured quickly and used in a large number of ways. However borrowing too much money can lead to decreased cash flow and payments can even overtake income in some cases. Venture capital’s would also be a very good way to source finance externally, this is because usually want to contribute to the running of the bus iness and bring in new experience and knowledge which could be vital to help the business grow. Whereas, they may require a substantial part of the ownership of the company, which could be a disadvantage because they would be receiving a substantial percentageShow MoreRelatedP4 Describe Sources of Internal and External Finance for a Selected Business.869 Words   |  4 PagesHead of Finance Report From: Monaj Gurung Date: 23rd October 2012 Title: sources of internal and external finance for Waitrose Source of Finance All business needs money in order to operate properly. Finance simply means the management of some amounts of money. And source of finance is generally the place where money comes from. Example Waitrose gets money by selling their products to the customers and hence customers are the different classes Internal and External source of finance. InternalRead MoreDescribe Sources of Internal and External Finance for a Selected Business, Unit 2 P41424 Words   |  6 PagesDescribe sources of internal and external finance for a selected business For a business to run successfully on a daily basis it needs finances. Success comes when a business expands, reinvests and uses human recourses to run. Bentalls need money to run their business effectively and successfully. It needs finance for its daily running of the business for example, paying staff wages, paying bills for electricity and rent, paying taxes on time and ordering stock regularly. For a long term goal, BentallsRead MoreGfsgsdf Hshsdfshfd Sdhgw1479 Words   |  6 PagesCambridge TECHNICALS OCR LEVEL 3 CAMBRIDGE TECHNICAL CERTIFICATE/DIPLOMA IN IT BUSINESS RESOURCES D/502/5409 LEVEL 3 UNIT 30 GUIDED LEARNING HOURS: 60 UNIT CREDIT VALUE: 10 BUSINESS RESOURCES D/502/5409 LEVEL 3 UNIT 30 PURPOSE OF THE UNIT The unit looks at how a range of resources including human, physical, technological and financial resources are used and managed within business. This unit will help the learner to have an understanding of how human resources are managed and ofRead MoreUnit 2 P4830 Words   |  4 PagesUNIT:2 P4 P4: Describe sources of internal and external finance for a selected business. Introduction: In this particular task of the unit I will describe the internal and external finance sources for a particular selected business. In this task I will use the same company as I did before in the previous part of the unit. The name of the company is : Media Markt. In this task we will get to know where money actually comes from to actually create such a big company which is well known of itsRead MoreBtec Level 3 Business Business Enviroment Essay725 Words   |  3 PagesUnit 2: Business Resources – Assessment activity front sheet This front sheet must be completed by the learner (where appropriate and included with the work submitted for assessment Learner name: | Assessor name: | Date Issued: | Hand in date: | Date submitted: | Qualification :BTEC Level 3 National Business | Unit 2 – Assignment 1Business Consultancy | Criteria Reference | To achieve the criteria the evidence must show that the learner is able to: | Taskno | CriteriaAchieved | DateRead MoreUnit 21450 Words   |  6 PagesAssignment brief | Unit number and title | Unit 2 – Business Resources | Qualification | BTEC Level 3 Certificate, Subsidiary Diploma amp; Diploma in Business | Start date | September 2010 | Deadline | December 2010 | Assessor | L.McNeill | CRITERIA COVERED | | | P4, P5, P6, P7, M3, M4, D2 D3. | | | | | Assignment title | The Role of Financial Resources | Purpose: The aim of this unit is to develop learner knowledge of the range of human, physical, technological andfinancialRead Moreï » ¿Strategic Planning Process – Case Analysis1159 Words   |  5 Pagescomponents of a business, selected evaluative tools must be used. The tools are meant to serve as guidelines and not specific decision points. Management must decide upon the most appropriate pathway for the firm to follow given the input from both the internal and external environment. The I/O Model [Industrial Organization] advances the notion that the external environment plays the major role in deciding the firm’s strategic actions. The Resource-Based Model states that the internal environmentRead MoreP1- bUSINESS UNIT 22223 Words   |  9 Pages Wrotham School BTEC Task Sheet Front Cover Name of Centre: Wrotham School Title of Course: BTEC National Subsidiary Diploma in Business Studies Unit Number and Title: Unit 2: Business Resources Name of assessors: Mr Williams Mr Toher Deadline for completion: Statement of Context: At the core of every organization are the human, physical, technological and financial resources that enable it to function. In this unit you learn the importance organizations placeRead MoreAssignment Help1995 Words   |  8 Pages | |1.1,1.2,1.3,2.1, | | |Outcome 1: Explore the sources of finance |2.2,2.3,2.4,3.1, | | |available to a business |3.2,3.3,4.1,4.2,4.3 | | | | Read MoreAssignment Help2001 Words   |  9 Pages | |1.1,1.2,1.3,2.1, | | |Outcome 1: Explore the sources of finance |2.2,2.3,2.4,3.1, | | |available to a business |3.2,3.3,4.1,4.2,4.3 | | | |