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Discussion with a friend Scenario A friend of yours is eager to start his business (a Florist). Your friend has saved £10,000 but knows that a minimum of £30,000 is needed to start the business.
Instructions
You are to give advice to your friend regarding possible financial sources to raise the remaining £20,000.00 and explain what consequences will each option bring in terms of control and in terms of financial cost as well as the effect on the balance sheet, ultimately recommending one or 2 methods.
Problem 1: You should also explain to your friend that in order to obtain the necessary funds, the stakeholder bank, investors, etc.) will need some information before releasing the funds and explain to your friend what each stakeholder will need. Discuss also the importance of financial planning to ensure that the funds are properly utilize in the business. You should make a table/notes for your friend to understand the options better.
Financial Statement Analysis and Preparation
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