Find long term sources of finance

Reference no: EM1330928

Finance as a Resource Within a Business

- Identify the short term and long term sources of finance where suitable, for each scenario. Give at least two-three options in each scenario.
- Assess the implications & costs of each source including the relative advantages and disadvantages to the business.
- Advice on the appropriate source of finance for each scenario giving valid justification, why you think it is the most suitable source in each case.

Scenario 1.
Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial complex as their venue. The Franchise with establishment cost & working capital for the first six months of operation, would require an investment of ? 400,000.

Scenario 2.
A transportation company requires to add two new buses to their fleet of vehicles, with the increasing demand for transportation for the businesses in the construction industry. This company is a medium-sized company, with a good reputation in the market for the services it provides. They had commenced their business since the past four years. They have been operating efficiently making consistent net profits at the rate of 15% per annum since they commenced operations. The cost of the buses amounts to ? 225,000.

Reference no: EM1330928

Questions Cloud

Estimate value of brands for cadbury schweppes : What approaches would you use to estimate the value of brands? What assumptions underlie these approaches?

The idea of "competition of funds" : Describe some the factors found within the idea of "competition of funds"?

Explaining assumption-intellectual and grammatically correct : Write about these assumptions in an highly intellectual and grammatically correct fashion. Write from the standpoint of whether these are your assumptions about leadership or not.

Effectively reflect the true marketplace benefit and price : What do you think that they would be able to effectively reflect the true marketplace benefit and price.

Find long term sources of finance : Check the short term and long term sources of finance where suitable, for each scenario. Give at least two-three options in each scenario.

Maintenance tracking application for an apartment complex : I dentify 3 variables, along with their types, that I would use in my program. Give a brief description of the variables and see if it contains any reusable components, if so, I am to mention that it does.

Capital structure for goodyear-campbell soup : Describe your recommendations for each of these three companies. Consider the nature of their business, the riskiness of company, and advantages and disadvantages of debt over equity financing in your answers.

Human resources tools : Why did you suggest these specific procedures? Where and how could you compensate for the eliminated procedures?

Describe ways firms establish barriers to entry : Describe ways firms establish barriers to entry and explain how they benefit firms but not consumers.

User Account

All Pages