...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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...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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... 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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...Conclusions and best recommendations……………………………………………………11 Sources……………………………………………………………………………………….13 Introduction Finance is considered one of the most important aspects (units) of any institution, as it pertains to the arts and science of managing money (Khan & Jain 2007). There are major areas of finance including; * Financial services; which deal with the delivery of advice and financial products to businesses, individuals etc within the areas of banking. * Financial management; which deals with the duties of financial managers, and the said managers are responsible for budgeting, financial forecasting, cash management etc (Khan &Jain 2007). Applicably therefore, without financial help, or without a budget, it will be impossible for BBC capacity building institute to implement any plans and strategies, no matter how good they are. This is so because budgeting entails planning and control, and without these BBC is bound to crash. 1.1 How budgeting can assist BBC training Institute in planning First and foremost it is important to note that a budget per BusinessDictionary.com is an estimate of costs, revenues and resources over a specified period, reflecting a reading of future financial conditions and goals. Budgeting is a process of expressing quantified resource requirements (amount of capital, amount of...
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...| MANAGING BUSINESS BUSINESS ACTIVITIES TO ACHIEVE RESULTS | [Type the document subtitle] | | MBATAR | | ANN MBURU | 4/15/2014 | | Enhancing Competitive Advantage: A Case Study of Emirate Airline Insert Surname MBURU ANN Insert Course Title MBATAR Insert Course Code Insert Date 15-4-14 Insert Lecturer’s Name Table of Content Introduction………………………………………………………………………………. 3 Objectives of the study…………………………………………………………………… 4 The proposed corporate strategy of Emirate Airline…………………………………... 4 Recommendations………………………………………………………………………… 10 Conclusion………………………………………………………………………………… 11 References………………………………………………………………………………… 12 Introduction The Emirates Airline which is a part of the Emirates Group is presently one of the main airlines in the Middle East. In one week, the airline has close to two thousand two hundred flights traversing across the United Arab Emirates and Dubai. The airline’s head offices and coordination centre is strategically located in Dubai. Other than its supremacy in flight operations in the Middle East, the Emirates Airline is known to serve the longest flights in the entire world. The airline was established after the collapse of Gulf Air in 1985 and is wholly owned and run by the government of Dubai, a constituent country of the United Arab Emirates (UAE) group. Its main activity is offering commercial transportation services which is sub divided into four categories namely: - international which entails providing...
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...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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...Assignment 1 – Sources of Finance 1. What are the gearing implications of (i) equity and (ii) loan financing for the current and future shareholders? Raven Construction PLC has Share Capital of £400,000 and total long-term debts of £800,000 giving it a debt to equity ratio of 2:1. Therefore, Raven Construction PLC is said to be Highly Geared as it currently has £2 of debt for every £1 of equity. This is calculated from the following equation: Long-term DebtCurrent Equity =Gearing Ratio i. Equity Financing – This is the process of raising capital through the sales of shares and refers to an ownership in Raven PLC. The purchase of shares is a simple way of introducing permanent capital into the company. The introduction of new shares will reduce the gearing ratio in Raven PLC and will give the company a greater amount of equity available to cover its long-term debts. ii. Loan Financing – This is a process of raising capital through the borrowing of equity from a third party that does not benefit from ownership of the company. The third party will loan an amount of cash over an agreed period and require payments, with interest, to be repaid over the life of the loan. This will give Raven PLC even more debt than equity. An increase in the amount of long-term debt will increase the gearing ratio further 2. Make clear recommendations to the company on how to finance their expansion? Raven Construction PLC now requires £1.2m for its current planned expansion...
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...Q – 1 To: The Directors, Marstons Group From: Financial Analyst Date: 16 December 2011 Subject: Performance Analysis 2008-2009 Introduction The following contains a detailed report of Marstons Group’s performance for the year ended 2009, compared with its performance for the year ended 2008. The report also contains calculative analysis of the company’s performance in the past financial year and its variances from previous year’s performance. Trend Analysis A vertical and horizontal trend analysis has been performed so as to detect any major variance in the organization in the past two years. Comprehensive Statement of Position Vertical Analysis There has not been any significant change on the non-current asset side of the organization apart from the decrease in Property, Plant and equipment & increase in deferred tax assets. A part of the Property, Plant and equipment has been either depreciated or sold leading to a negative variance of 2.2%. The reserve for deferred tax has been increased by 0.5%. Goodwill, other intangible assets and other non-current have been stable. Total non-current assets have decreased by 1.6%. The current assets have shown a positive variance of 1.6%, this is mainly due to increase in cash balance from £60.1m in 2008 to £91.3m in 2009. One of the main source of cash was the issue of shares. However, long-term financing does come at a price in the form of future dividend payments. Even though there has been fall...
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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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...Making a Financial Case Name: Darren Owen Organisation: ERIKS UK Email Address: Darren.owen@eriks.co.uk Introduction to Organisation ERIKS Industrial Distribution Uk is the UK division of SHV Holdings, which is the largest privately owned trading company in the Netherlands.In 1962 two black country businessmen set up a company called WYKO, supplying local businesses with bearings and power transmission products. Over the next 40 years the company grew to have over 100 branches including several repair divisions.In 2006 Dutch engineering company ERIKS purchased WYKO and instantly became Europe’s market leader for industrial products and services .By 2012 ERIKS had 65 group companies covering 27 countries.In 2009 the ERIKS group was purchased by SHV Holdings a privately owned company. SHV started in the mid 1890,s selling coal; they moved into oil and petrol and even established the Makro cash and carry stores.SHV is currently in the top 100 of the world’s largest privately owned groups with a workforce of approximately 65000 people in 48 countries, generating a turnover of 20 Billion Euros.I work for the Integrated Solutions Division of ERIKS. | | Since its creation in 1997, ERIKS Integrated Solutions Division has successfully managed client´s MRO Procurement functions as well as their MRO stores operations. These activities have generated significant total cost down benefits for many clients over the past 10 years, with the division currently operational on site...
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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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...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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...Managing Financial Principles and Techniques - Financial and Investment analysis Contents 1. Be able to apply cost concepts to the decision-making process 2 2. Be able to apply forecasting techniques to obtain information for decision making 4 3. Be able to participate in the budgetary process of an organization 5 4. Be able to recommend cost reduction and management processes for an organization 7 5. Be able to use financial appraisal techniques to make strategic investment decisions for an organization 8 6. Be able to interpret financial statements for planning and decision making 10 References 12 1. Be able to apply cost concepts to the decision-making process 1.1 explain the importance of costs in the pricing strategy of an organisation The pricing strategy becomes the major element in marketing mix of Dell Computers as it is related to product positioning. When there is a planning for new product launch pricing strategy is important and it requires general sequence of stages involved during pricing the new product. The different steps are as follows: (Daft, 2011) * Developing marketing strategy – helps the company to develop marketing strategy based on market analysis, market segmentation and positioning * Marketing Mix decisions – Defining a product, distribution and its promotional tactics * Estimation of demand curve – Estimating the demand and understand how it varies from quantity wit price * Cost Calculation – Calculation of fixed...
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...Summary of Key Operating & Financial Data 11-12 AGM & COMPANY PERFORMANCE Notice of 35th Annual General Meeting Chairman’s Message to Shareholders Report of the Board of Directors 13 14 ANNUAL REPORT 2014 15 - 19 1 Table of contents COMPLIANCE REPORT Corporate Governance Compliance Report 20 - 38 FINANCIAL RESULTS Auditors’ Report to the Shareholders Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Shareholders’ Equity Statement of Cash Flows Notes to the Financial Statements Unit-wise Working Result Schedule of Non- Current Assets Certificate on Review of financial statements PROXY FORM 39 - 40 41 - 42 43 - 44 45 46 - 47 48 - 80 81 - 82 83 - 84 85 ANNUAL REPORT 2014 2 Letter of Transmittal December 6, 2014 Esteemed Shareholders Bangladesh Securities and Exchange Commission Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Registrar of Joint Stock Companies and Firms Dear Sir or Madam, Subject: Annual Report for the year ended June 30, 2014 It is our pleasure to inform you that the 35th Annual General Meeting of Olympic Industries Limited will be held on Wednesday, December 24, 2014 at 10:00 AM at our 2nd biscuit factory premises at Lolati, P.S. Sonargaon, District Narayanganj. As such, it our pleasure to forward you our Annual Report together with our audited financial statements comprising of the Auditor’s Report to the Shareholders, Statement of Financial Position, Statement of Comprehensive...
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...OLDTOWN BERHAD (797771-M) OLDTOWN BERHAD (797771-M) (Incorporated in Malaysia) (Incorporated in Malaysia) The Board of Directors (“the Board”) of Oldtown Berhad (“the Company”) recognises the value of good governance and believes that a high standard of corporate governance will deliver long-term sustainable shareholder value. The Board is committed to ensure good corporate governance practices are applied throughout the Company and its subsidiaries (“the Group”). This Statement sets out the key aspects of how the Company has applied the Principles and Recommendations of the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”) during the financial year ended 31 March 2014 and any non-observation of the Recommendations of MCCG 2012, including the reasons thereof, has been included in this Statement. Principle 1 – Establish Clear Roles and Responsibilities 1.1 Clear Functions of The Board and Management The Board leads the Group and plays a strategic role in overseeing the Group’s corporate objectives, directions and long term goals of the business. The Board is responsible for oversight and overall management of the Group. The Board Committees are established to assist the Board in discharging its responsibilities. The Board delegates specific responsibilities to three (3) principal Committees, namely the Audit Committee, the Nomination Committee and the Remuneration Committee. All committees have written terms of references and operating...
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