...parties and the external parties. The information needs of them also differ according to their needs. Owners/ Shareholders: They can be categorized as internal parties and their information needed for decision making are listed below. • Profitability of the company • Profit attributable to shareholders • Organizations asset base/ payables or net worth • Availability of cash for future expansions Employees Employees are also internal parties but their purpose of getting the information about the organization is different compared to the owners’ interest. Employees are mainly concerned about their salaries and other benefits from the employment and the continuity of the business for the security of their work. They are interested in following financial information. • • Profitability of the company Future expansion Plans External Parties includes Lenders/ banks Government/ regulatory institutions Public/ customers Lenders: Lenders/ Banks seek more information about the company when lending money for them to expand or for operations. Usually banks look for following information; • Gearing ratio of the company(Ratio between the equity capital and loan capital) • Profitability • Liquidity of the company • Interest cover (Ability to pay interest if the loans are taken) • Fixed assets base to get the information about the securities available for the loan etc Government/ Regulatory institutions • Profit earned to asses the income tax payable. • Other taxes payable amounts • Compliance...
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...Small business enterprise (Coursework assignment) | | Task 1. Performance of a Small Business Enterprise The creation of Cambridge Satchel Company Ltd is more likely sparkling idea rather then some thoroughly planned enterprise. Later become big player and taking its place into market niche. At first look it seems that the company has been raised as a child, engaging only family into the beginning with starting capital of just few hundred pounds. But we needn’t look at this briefly, we should focus exactly on this very moment and deduct conceiving of the idea from its initial start. As founder of the company says - ‘I was determined I wouldn’t go over my £600 – if it didn’t work I’d get a job.’, having this we might consider the whole idea as endeavour to something either great or totally disastrous. The stake £600, the prize new business. Contemporary business entrepreneurs have all their big initial capitals, team of management, PRs and all media and market researchers, but in the light of all this one certain chain of the economy drives it further and provides the foundation of business development in place. This very important chain is small business enterprise. The determination of the single person to create a business is decisive when it comes to a successful start. ‘You can spend thousands and get nowhere if you’re lazy. A limited budget makes you more creative – you know it’s about you making money, not how 5 other businesses...
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...Introduction: The aim of this report is to conduct an analysis of the financial statements of J. Sainsbury plc and Tesco plc for the year ending 2013, comparing both companies by looking at the ratios calculated and looking at the importance of supplementing financial analysis with non-financial considerations. Tesco is Britain’s leading food retailer and the third largest in the world. Tesco opened in 1929. After joining the eighties trend for large out-of-town supermarkets, in the 1990’s the company started pioneering many new innovations. Tesco has over 530,000 colleagues over 12 countries serving up to 75 million transactions every week. J. Sainsbury is into grocery, retail and financial services. It has a 16.8% UK market share. It has 157,000 colleagues, 23 million customer transactions per week, and 1,106 stores. The information in appendix 1 and 2 was extracted from both companies’ annual reports, for Sainsbury’s year ended March 2013 and February2013 for Tesco. Analysis An operating profit of £9.25 was made on every £100 of capital employed from Sainsbury’s. Compared to Tesco, an operating profit of £7.02 was made on every £100. Looking at the two figures Sainsbury utilizes their capital more efficiently than Tesco, because looking at their revenue scale Tesco is has 2188 compared to Sainsbury which only has 887. Using the 10 year benchmark in the UK, the risk free return rate is at 2.87% in the UK ( (Bloomberg). Therefore comparing Tesco and Sainsbury against the...
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...THE LONDON COLLEGE UCK HND IN BUSINESS HNBS 102 MANAGING FINANCIAL RESOURCES AND DECISION TASK 1) General information about the company: - the full name of the company: the restaurant "Millennium"; - the legal form of the company: general partnership;( being in a partnership the company has more chance to be successful not only cause more capital is injecting to the business but also expertise or specialised skills and knowledge can be used to run the business smoothly. Important is that any kind of liabilities are divided between the partners.) - activities: industry: restaurants, retail and utilities; - company location: London Representation of entrepreneurs: Main characteristics: - the primary goal of the company is to operate and on the nature of the service, and to strive to satisfy any culinary needs and expectations on the part of clients (mainly residents of the city of London); - getting a significant position in the local catering market; - the entry of the company on the domestic market, and also in the future to strengthen their position nationally. Capital expenditures is creating future benefits for a business . Existing when a business invest money in to fixed assets or to add the value of an existing with a useful life extending. The long-term financing provides businesses with a more stable debt management than a short-term loan. Unlike particular short-term loans such as credit from...
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...Cover Page Programme: BTEC Higher National Diploma (HND) in Business Unit Title and Number: Managing Financial Resources and Decisions (Unit 2) QFC Level: 4 Credit Value: 15 Credits Module Tutor: Yannick Fansi Student’s Name: Adeyinka Adedoyin Email: princessadeyinkaadedoyin@yahoo.com Student’s ID: 21834 Task 1: 1.1 Identify the Alternative Sources of finance that could be available to the business. (1.1, 1.2) Introduction In writing this assignment report, I will attempt to look into the different sources of finance that business can access or that available for starting a new business and I will also find out the implications of sources of finance and how it impacts on the business. It is often difficult to start a business without enough capital or cash, as all businesses require some form of finance throughout the life span of the business and for the operational cost of the day to day running of the business. Therefore without finance or raising enough capital the business can never materialised. It can therefore be argued that Finance is the life wire of a business as it plays a major role in starting a business. Finance can be used for various business projects including purchase of machinery, starting up a restaurant or for expanding existing business. When considering starting a business before raising the finance certain factors such as the size of the business, location of the business, the type of business and the target...
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...Health&Beauty Spa Services Business Plan 2014 Baby and Me Health-Beauty Spa services London Phone: 02033248641 Mobile:07849282187 e-mail:infobaby_me@yahoo.com 1 Table of Contents 1.Executive Summary 2.Sources of Finance 2.1 Sources of finance 2.2 Importance of Sources of finance 2.3 Capital required for business 2.4 Advantages and disadvantages of finance 2.5 Start-up 2.6 Cash flow 2.7 Sales Forecast 6 7 8 9 9 12 13 3. Return Investment 3.1 Investment Appraisal 3.2 Importance of Investment Appraisal 3.3 Advantages and Disadvantages 3.4 Calculation of Return on Investment 14 14 15 16 4.Financial Planning 4.1 Successful business 4.2 Importance of financial planning 4.3 Price 4.4 Fixed cost and Variable cost 4.5 Break even analysis 17 18 19 20 20 5.Financial Documents 5.1 Importance of financial documents 5.2 Profit and Loss account 5.3 Balance sheet 5.4 Profit and loss 5.4 Ratios 5.5 Conclusion Reference List 2 21 22 24 24 25 25 1. Executive Summary Baby and Me is a start-up business, planned to begin commerce In June 2014 as a sole trader enterprise owned by Oktavianti. The business leads up to be the first mother-to-be spa or salon in Bedford Square, London City. With services and products offered in an exclusive combination, I believe that the market share will grow quickly. Baby and Me supplies clients with a relaxing and recovering environment where all of their soul and body necessities...
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...STUDENT NAME: tishanni corpus Clarke Task. 1:1.1 AC identify the sources of finance available to the business. 1. Government grants A grant of monetary help with the type of cash by the government to a qualified grantee with no desire that the trusts will be paid back (staff, 2015) 2. Leasing Is a system that permits people to claim and make utilisation of specific resources for medium to long haul financing periods consequently for beforehand set between time instalments (Ahali.com, 2015) 3. Friends and Relative They may offer advances without security or consent to a more drawn out reimbursement period (Business gateway, 2015) 4. Government program Chosen, state, and neighbourhood governments have programs expected to help the financing of new interests likewise, little associations. The assistance is much of the time in the kind of an organization certification of the repayment of a development from a customary advance master Anon, (2015). [Online] available at: 5. Life insurance Is a way of ensuring your family or your friendship ones in the event that you pass away (you tube, 2012). 6. Personal savings The primary spot business visionaries ought to search for start-up cash is in their own pockets. It is the slightest costly wellspring of stores accessible (13 sources of finance, 2015). 7. Bank loans A development made by a bank to be repaid with eagerness...
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...Abstract Before selecting the proper financing sources Knowing the costs of financing is a prerequisite. This assignment is regarding the financing issues of business. it is very necessary to have proper knowledge over the financing terms and methods to obtain requisite financing for the organization. One has to know the costs of financing as a prerequisite before selecting the proper financing sources. In this assignment, several advantages and disadvantages are discussed for different financing methods, cost of finance, financial planning and information and many other issues that help to gain a proper knowledge about the financing in organization. Different books and journals have been used to prepare the assignment. Contents Introduction 3 Requirement 1 3 Task 1.1 : Business needs finance and available sources of finance to a business 3 Equity financing 4 Debt Financing 4 Lease Financing 4 Task 1.2 : Accessing and comparing the implication of the different sources of finance 4 Implication of equity financing 4 Implication of debt financing 4 Implication of lease financing 5 Task 1.3: evaluation of the appropriate sources of finance for the above mention businesses. 5 M1: Critically evaluate each available sources of finance to that particular firm. Evaluation should include the pros and cons, and legal aspects of each source. (Merit M1). 5 Case study 1: An engineering firm 5 Equity financing for this firm 5 Debt financing 5 Lease financing...
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...The purpose and nature of the budgeting process A budget is a financial document used to project future income and expenses. For manufacturing, budget show the predict finance about the number and the estimate cost of all items which related in production such as: overhead cost, material, labor, revenue, expenses, assets, liabilities, etc. From these predictions, it can help company picturing out the future cost and profit. The budgeting process may be carried out by individuals or by companies to estimate whether the company can continue to operate with its projected income and expenses. Purpose and advantages Budgets play an important role in the manufacturing and production process because companies will allocate each production cost to products. Spending too much money on specific activities will raise individual product costs, requiring companies to charge consumers for inefficient operations[1]. There are seven main purpose of budget. Firstly, budget can ensure the achievement of organizational objectives and push organizational planning. The reason is that a performance budget is a strategic tool that enables a company to win the competitive game. Moreover, a budget is basically a money plan, outlining company financial goals. Having a budget, company can well establish and regulate funds, set and achieve company financial objectives, and make advance decisions as to how company want company finances to function well for company. The main...
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... MANAGING FINANCIAL RESOURSES AND DECISIONS MAKING UNIT NUMBER: UNIT 2 QFC LEVEL: LEVEL 5 ASSESSMENT TASK 1 Eight (8) sources of finance available to a business and for each source; assess its implications (financial, legal, dilution of control and bankruptcy). Sources of finances can be divided into two namely, internal and external finance. Internal finance refers to the funds or financial resources that are within easy reach of business owner i.e. owner has control over resources. BBC (2013) Examples of Internal finance include personal finance and retained earnings/profit. Personal/Owner’s Finance comprises of financial resources such as personal savings, current or fixed assets used by the owner to raise funds for a business project. Most of the resources are either in cash or inconvertible to cash, with the exception of fixed assets such as equipment that can be difficult to convert for usage immediately. Houston Chronicle (2013) The advantage of using personal finance is that the business owner does not need to worry about paying interest rates or meeting deadlines for repayment. Also, as stated above the owner benefits from having autonomy to make decisions on how to run the business i.e. having full control of the business and its resources with no interest rate needed. Using personal finance can jeopardise the financial standing...
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...Report To - Michel Chang From - Consultant of the Michel Chang Date - 15th May, 2013 Subject -Financial analysis of the investment proposals by investment appraisal tools and giving suggestions and recommendations. I am going report the suggestion of acceptable investment with NPV method to you as a consultant of Michel Chang. For Beer Chang, 0 (15000) × 1 = (15000) PVIFA (r=10%) n 1-10 3000 × 6.145 = 18435 10 1500 × 0.386 = 579 NPV = 4014 For EduCare, 0 (10,000) × 1 = (10000) 1 (500) × 0.909 = (454.5) 2 1500 ×0.826 = 1239 3 2500 × 0.751 = 1877.5 4 3500 × 0.683 = 2390.5 5 4500 × 0.621 = 2794.5 6 5500 × 0.564 = 3102 7 6000 × 0.513 = 3078 8 5400 × 0.467 = 2521.8 9 4400 × 0.424 = 1865.6 10 2000 × 0.386 = 772 9186.4 Due to NPV method, the final results show that both investments show positive answer and are possible. Comment and Suggestion I can tell Both Beer Chang Project and EduCare are acceptable based on these calculations with NPV method. But we cannot do both of them at the same time. We have to choose the most possible project. According to this calculation, EduCare can make more profit more than Beer Chang can get. This is the fact, why we have to choose EduCare Service. 1. Investment Appraisal Methods There are four types of Investment Appraisal methods. They are- 1. NPV (Net Present...
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...Developing a customer’s service focus Assignment 7 Sophia martin Understand customer service needs within the context of enterprise * Good communication skills. * Friendly service with a smile and approachable * Ensure environment is clean daily * Quality and value for money The 7Cs for effective business Communication are 1. Clarity 2. Completeness 3. Conciseness 4. Consideration (The ‘you’ Attitude) 5. Correctness Accuracy 6. Concreteness 7. Courtesy Understanding the importance of good communication in relation to the customer Customer care is a crucial element of business success. Every contact your customers have with your business is an opportunity for you to improve your reputation with them and increase the likelihood of further sales. From your telephone manner to the efficiency of your order-fulfilment systems, almost every aspect of your business affects the way your customers view your business. But there are also specific programs you can put in place to increase your levels of customer care. This guide outlines what customer care involves. It explains how you can use customer contact, feedback and loyalty schemes to retain existing customers, increase your sales to them and even win new customers. It also covers how to prepare for receiving a customer complaint. WHAT IS CUSTOMER CARE? Customer care involves putting systems in place to maximise your customers' satisfaction with your business. It should be a prime consideration...
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...* ------------------------------------------------- Reliance growth fund is an open ended equity growth scheme. The growth fund invests in stocks. * ------------------------------------------------- The fund benchmarks the BSE 100 index. * ------------------------------------------------- The investment objective of the scheme is to achieve long-term growth by investing in equity and securities. * ------------------------------------------------- Annual equity returns after inflation during the 29th century (1925 ~ 2001) Australia 0.98%, UK 5.01%. * ------------------------------------------------- The world average for the period 1949-1999 is 8.53% * ------------------------------------------------- The return & risk in emerging markets (Argentina, Brazil, India) are higher in comparison to Developed Markets (Australia, Canada, Germany etc) ------------------------------------------------- The aimed to restrict our study to analyze:- ------------------------------------------------- Q1. Calculate mean returns and standard deviation for each stock in the Reliance Growth Fund. ------------------------------------------------- Q2. Construct a 2 stock portfolio consisting of Reliance Communication and JSW. Estimate mean returns and standard deviation assuming equal investment. What composition of the two stocks has the least risk? ------------------------------------------------- Q3. Repeat analysis for a portfolio consisting of Reliance Communication...
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...Financial Instruments in Cohesion Policy 2014-2020 COHESION POLICY 2014-2020 The European Commission adopted legislative proposals for cohesion policy for 2014-2020 in October 2011 This factsheet is one in a series highlighting key elements of the future approach Table of contents What is the aim? What is proposed? What has changed from 2007-2013? What are the practical effects? Cohesion Policy Financial instruments represent a resource-efficient way of deploying cohesion policy resources in pursuit of the Europe 2020 Strategy objectives. Targeting projects with potential economic viability, financial instruments provide support for investments by way of loans, guarantees, equity and other risk-bearing mechanisms including policy-based guarantees for the European Social Fund (ESF), possibly combined with interest rate subsidies or guarantee fee subsidies within the same operation. Besides the obvious advantages of recycling funds over the long term, financial instruments help to mobilise additional public or private co-investments in order to address market failures in line with Europe 2020 and cohesion policy priorities. Their delivery structures entail additional expertise and know-how, which helps to increase the efficiency and effectiveness of public resource allocation. Moreover, these instruments provide a variety of incentives to better performance, including greater financial discipline at the level of supported projects. Financial instruments have been...
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...the impact of manager behavior on productivity. Resource: Ch. 1 & 2 of Managing Human Resources Content • Human Resources in a Globally Competitive Market o Managing people: A critical role for every manager (pp. 6-10) o Features of the competitive business environment (pp. 10-14) o Productivity: What is it and why is it important? (pp. 22-26) o The 21st Century Corporation (pp. 27-29) • The Financial Impact of Human Resource Management Activities o The financial impact of high-performance work practices (pp. 40-43) o The behavior costing approach (pp. 43-46) o Financial effects of employee attitudes (pp. 46-49) o Costing employee absenteeism (pp. 49-54) o Costing employee turnover (pp. 54-58) o Financial effects of work-life programs (pp. 58-62) o Costing the effects of training activities (pp. 62-69) OBJECTIVE: Describe manager actions that adhere to and also violate fair employment laws. Resource: Ch. 3 of Managing Human Resources • The Legal Context of Employment Decisions o EEO and unfair discrimination: What are they? (pp. 77-79) o The legal context of human resource decisions (pp. 79-107) OBJECTIVE: Describe effective management practices in a diverse workplace. Resource: Ch. 4 of Managing Human Resources • Diversity at Work o Workforce diversity: An essential component of HR strategy (pp. 119-35) o Managing diversity (pp. 135-44) Note: Use the information...
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