...SOURCES OF FINANCE Matching the appropriate source of finance to a situation This is a paired exercise. The aim is to match the situation to the most appropriate source of finance. CASE STUDIES NEW MINIMARKET Roy Bhuvnesh has been made redundant after 20 years with a major organisation and has received a lump sum redundancy payment of £70,000. He is planning to set up a new minimarket and has identified suitable premises valued at £180,000 in Green Lane. BUYING A NEW FREEZER CABINET A small newsagent in Green Lane has decided to purchase a new freezer cabinet and oven/roasting unit to provide hot meals for local workers and for pupils at Northwood School which serves the surrounding area. The cost of the units is £8,500. MOBILE CAR VALET SERVICE You have just passed your driving test and along with a friend are setting a business to offer a mobile car valet service. This would involve them travelling to people’s homes and washing and internally cleaning customer cars. They are hoping to attract private customers and local garages who sell second hand cars. RE-LOCATING TO SWANSEA Sentinel Industries plc are planning on moving a major part of its production facility to Swansea. It has identified a site near a former chalk pit that is now not used. The estimated cost of the facility is £10 million. BUYING NEW EQUIPMENT Lucas Engineering Ltd with an annual turnover of £3.5 million has decided to install new machinery to help improve its productivity...
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...P4 Sources of Finance INTERNAL An internal source of finance means to get money from within the business. Owners Savings The owners’ savings is the potential owners’ own money which is normally used when starting up a business. This can be a good source of finance especially for sole traders because since the owner has been saving up for most of their life, they would have enough money to invest in the business and they don’t have to worry about paying any employees or shareholders. However, there can be a disadvantage for sole traders when using this source of finance because they must be careful when investing money as they must know their limits in case they don’t have enough money to support themselves. PLC’s (Public Limited Company) would also use this source of finance through their shareholders who each invest money into the business. There can be an advantage for shareholders who use this source of finance when investing money into the business because if the business gains a profit, the shareholders will gain a dividend which means they will each get a share of the profits they make. However, there can also be a disadvantage because if the business makes a loss, the shareholders will lose the money they invested. Capital from profits Capital from profits refers to the money left over after most of the profits that have been earned have been shared with each of the shareholders. There are advantages of using this source of finance because the capital that is left...
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...P4 – describe sources of internal and external finance for a selected business Caledonia is a small takeaway outlet shop that sells chicken burgers, chips and drinks. It is located in Harlesden, near the estates. This is so that they can get a lot of customers coming in and out of there shop. There are two ways that Caledonia can get financial resources: * From within the business (internal sources) * From outside the business (external sources) Internal sources Caledonia can get financial resources internally from the business owner’s saving or from the profit that Caledonia makes. Owner’s savings The sole trader of Caledonia will have to use his own savings to start the business. This is because sometimes a bank may not want to invest in the business, because they don’t want to take the risk. Capital from profits Source | Details | Benefits | Drawbacks | Banks | Banks are able to offer loans, business accounts, commercial mortgages and overdraft facilities based on the business plan. Interest is payable based on the predicted risk. Some security will need to be provided, for example, assets such as a house. | * Quick and simple to start up * Various amounts of money can be loaned * Controlled repayment term | * Interest is allocated to the loan * Business can go bankrupt or get a poor credit rating if payments aren’t on schedule | Building societies | Building societies are also able to offer loans, business accounts, commercial mortgages and...
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...ESS Products LLP The Business. ESS are a ventilation and electrical contracting business. Based in Liphook the business operates in London and throughout the South East. The main focus of the business is installing ventilation equipment into domestic properties. 70% of business turnover comes from working for Housing Associations in the London area. The company employs 16 people with the 2013/2014 turnover forecast at £750,000 which is 20% increase over the previous financial year. Internal sources of finance. Retained Profit: This is the cheapest form of finance and is a short-term source. This profit retained in the business at the end of the previous year’s trading can be used to grow the company organically – e.g. by spending on new equipment, staff and resources to grow their operations. This may mean potentially slower growth than taking out a loan to grow rapidly but more stable finances. It can also lead to higher long term profit as there is no debt to pay interest on for the business. As the business had a 20% rise in turnover this year it is likely to have increased its retained profit, which should enable them to fund further growth in the future. A way of boosting the retained profit is by reducing the owner’s salaries to retain profit in the business to fund growth. This may cause problems in the short term as the owners are not drawing enough salary, but in the medium term it can be highly beneficial for the company as a cheap way of...
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...source of finance is generally the place where money comes from. Finance. I will be describing what internal and external ... www.markedbyteachers.com/.../business.../finance-i-will-be-describing-... Finance. I will be describing what internal and external sources are. ... Owner's fund The owner of a business might have to use there own savings to start there ... P4 Describe Sources of Internal and External Finance for a ... www.termpaperwarehouse.com › Business and Management Jun 10, 2014 - Read this essay on P4 – Describe Sources of Internal and External Finance for a Selected Business . Come browse our large digital ... [PPT]External sources of finance - BTEC Business btecbusiness.weebly.com/uploads/6/8/7/9/.../p4_sources_of_finance.ppt P4 Describe sources of internal and external finance for a selected business. This must be applied to a specific business, so choose one to base your work on ... Assignment 3 P4 - Level 3 Business Ms Groves - Google Sites https://sites.google.com/site/.../home/...2-business-resources/assignmen ... evidence for: § P4 Describe sources of internal and external finance for a selected business ... Finance P4.pptx. (91k) ... Finance ResourcesP4.pdf. (239k). Assignment 3 - P3, P4 - Sir Bernard Lovell Business https://sites.google.com/site/sirbernardlovellbusiness/home/btec...3/.../merit Task 1 - Describe the main physical and technological resources required in the ... 2 - Describe sources of internal and external finance for a selected...
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...BTEC Level 3 Diploma in Business [pic] |UNIT |Unit 2: Business Resources | |UNIT CREDIT |10 Credits | |ASSIGNMENT |Assignment 1- The Role of Financial Resources – Costs & Budgets | |TUTOR NAME | | |STUDENT NAME | | |DATE ISSUED |Please refer to your scheme of work. Dates are recorded when handed out (as assignment is issued at different times | | |for different programmes). | |DEADLINE |Please refer to your scheme of work. Dates are recorded when assignment needs to be submitted (as assignment are to be| | |handed in at different times for different programmes). ...
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...Task 2 Business Consultancy Firm: How Businesses Manage Resources P3, M1, P4 As part of your training, your manager asks you to prepare a presentation into how a local organisation manages its physical and technological resources. This task is designed to cover: P3 Describe the main physical and technological resources required in the operation of a selected organisation M1 Explain how the management of human, physical and technological resources can improve the performance of a selected organisation P4 Describe sources of internal and external finance for a selected business • Prepare a PowerPoint presentation detailing the physical and technological resources involved in the running of your selected business. Your presentation needs to take into account all those resources needed in the day-to-day running of that business. You should have at least one slide for each aspect, together with relevant images and your presentation should be no longer than 10 minutes. (P3) You should continue the PowerPoint presentation and create note slides to assist you in presenting your ideas. Take each group of resources in turn (human, physical and technological) and explain how managing these resources appropriately can lead to improvements in the overall performance of your selected organisation. To get you started, you could consider how managing staff could lead to higher sales levels, increased profits, reduction in costs and lower staff turnover rates. Similarly, how...
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...Task 4B- P4 and M3- the Financial Aspects of your business start-up. 1) P4- What is a personal survival fund? Personal survival fund, is money saved to ensure that a business has enough money to live whilst the business is building and growing. M3- why does your business need a personal survival fund? As my business is a new and a sole trader I need personal survival fund to get me though. Because my business is a sole trader I need to rely on myself. Because I am new business and a sole trader I will need a personal survival fund as not every business can start off automatically successful. 2) P4- What costs might your business may face? My business will face costs of premises. I will be renting premises therefore I will need to be paying monthly rent. I will also be paying staff their wages and be paying for my gym equipment. Such as the treadmill, kettle bell and dumb bell. M3- How will this affect your business? Cost will affect my business, because it is a new business, I will not benefit from the sales, as I will be using my sales money to pay the cost that my business will be facing. Moreover, cost affects my business because it will have a strong influence in cash flow. In general, the lower your production cost, the higher your profit, or the amount you have left over after you subtract your expenses from your sales revenue. 3) P4- What is pricing? Give examples of different methods? Pricing is the amount of money required as payment. There are several methods...
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...Highcliffe School - Centre 55215 | BTEC National Subsidiary Diploma in Business | UNIT 2 – BUSINESS RESOURCES | ASSIGNMENT NUMBER 3 of 4 | ASSIGNMENT 3 TITLE : ‘Financial Resources’ | CRITERIA ASSESSED P4, P6, M4, D1, D3 | CANDIDATE NAME - | | DATE ISSUED – 8th Oct 2013 | | SUBMISSION DATE - 5th Nov 2013 | ASSESSOR - Mr P Coughlan | I CERTIFY THAT THIS IS ALL MY OWN WORK, EXCEPT WHERE ATTRIBUTED IN REFERENCING: | STUDENT - | Assignment 2.3: Financial Resources Task One Sources of Finance: You are to produce a report on the method of financing that Sainsburys would be best using to fund the building of a new distribution warehouse costing £800k-£1m. You will need in this report to: * Discuss available sources of finance open to Sainsburys (Retained profits, Share Issue, Bank Loans), giving the advantages and disadvantages of each for funding this size of investment. * Choose one (or more) to recommend using and give detailed reasons for the choice. Grading Criteria Completion of this task will lead to achievement of the following learning outcome: P4 – describe the sources of internal and external finance that can be obtained for a selected business Task Two The company is going ahead with the building project. After a while it is clear that the costs of the project are much higher than originally planned; now running at £1.3m - £1.6m. * Write a report to the directors clearly outlining the problems caused for the business by this failure to control...
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...` Regent CollegeCollette DivisionL3 BTEC National Business2013/14 | | Student Name | Abdullah Kadiri | UNIT: 2 | Business Resources | Unit Credit value | 10 | ABOUT THIS UNIT | The aim of this unit is to develop learner knowledge of the range of human, physical, technological andfinancial resources required in an organisation, and how the management of these resources can impact on business performance. | ASSESSOR(S) | FBE/MHU | ASSIGNMENT REF: | | START DATE: | 2/12/13 | END DATE: | 15/03/14 | Task 1:P1, P2 and M2 | ScenarioYou are a manager at a local business (your selected organisation) and you have been invited to give a series of two careers talks to Year 11 students about recruitment and selection within your organisation.Your presentation should include the following:P1 * A brief introduction to the business; * A summary of the types of employment within the business; * An explanation of the recruitment process with emphasis on the purpose and contents of job descriptions. This should be supported with annotated examples of job descriptions from the selected organisation; * An explanation of the purpose and content of employment contracts. This should be supported with an annotated example of an employment contract from the selected organisation. * For evidence produce written examples P2 * A description of one specific job within the organisation. This could relate to one of the...
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...years. However, the application of credit cards are much more easier nowadays especially for teenagers just over eighteen, therefore the problem of overspending with credit cards exists. If fact, there are three major reasons that lead to overspending of credit cards among teenagers. First of all, most teenagers don't know how to manage their own finance. A research report by Sallie Mae (2009,p2) shows that, there is a recommended 10% of income as a payment of debts for teenagers. However the research has investigated that there are 30% of income as debts payment in reality among teenagers which is $3173 US dollars on average. It also states that teenagers are mismanaging their credit cards by overspending with it and they are unable to pay for the debts in result. To conclude, teenagers just spend all or even more then they have with the help of their own credit cards, resulting in overspending and debts. Secondly, not knowing the serious consequences that bring by overspending among teenagers is also a major reason that cause overspending. A research report by Xiao, J.J & Tang, C.Y & Serido, J & Shim, S, (2011,p4) try to investigate factors that affecting risky borrowing behavior on over 2000 first-year student that have their own credit cards. The result shows that financial knowledge is negatively related with risky borrowing behavior and positively related with credit card debts. Furthermore, over 60 percent of students don”t know the consequences bring by...
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...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 of the employability and personal skills required of personnel in an organisation. Learners will gain an understanding of the purpose of managing resources effectively, not only in relation to human resources but also in terms of physical and technological resources. Learners will also gain an understanding of how an organisation can gain access to sources of finance, both internally and externally and be able to interpret financial statements. There are clear links between this unit and many of the other units; it serves as a useful introduction to areas that may be covered in depth in further units. www.ocr.org.uk 2 Business Resources Level 3 Unit 30 ASSESSMENT AND GRADING CRITERIA Learning Outcome (LO) Pass The assessment criteria are the pass requirements for this unit. Merit To achieve a merit the evidence must show that, in addition to the pass criteria, the learner is able to: M1 analyse the recruitment documentation of a selected organisation Distinction To achieve a distinction the evidence must show that, in addition to the pass and merit criteria, the learner...
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...Edexcel Level 3 Extended Diploma in Business Harrow High School Unit 2: Business Resources Grade P1 | P2 | P3 | P4 | P5 | P6 | P7 | P8 | P9 | | | | | | | | | | M1 | M2 | M3 | M4 | D1 | D2 | D3 | D4 | | | | | | | | | Overall Grade P | | M | | D | | Deadlines Date Issued: | Date Due: | Date Submitted: Date | Declarations Student: I declare that the work submitted in this assignment is my own work and any resources used have been acknowledged. I understand that false declaration is a form of malpractice. I understand the requirements of this BTEC Level 3 National Certificate in Applied Science. I have been offered constructive feedback and the opportunity to improve my work. Assessor I declare that I have issued the relevant resource material. I ensured that the student understood the requirements for the completion of this course. The student named above completed the work that is submitted and the work is their own. Student Signature | Assessor Signature | Date | Date | Unit 2 – Business Resources At the core of every organisation are the human, physical, technological and financial resources that enable it to function. This unit will give learners a broad understanding of the importance organisations place on managing their resources efficiently in order to achieve their objectives. It is important that learners are able to relate their understanding of resource management to a real organisation...
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...BTEC Level 3 Subsidiary / Diploma, Business Studies Unit 2 – Business Resources Assignment 1 (P1, P2, M2) – Recruiting the Right Staff Scenario You are coming to the end of your BTEC course and you have been considering getting a job in the summer break before you start university. As well as earning some extra money, you are looking forward to the opportunity to develop your skills and put into practice the knowledge you have learnt on your BTEC course. Task one (P1 part) Research some jobs that you can apply for on job websites. You could look at www.monster.com or www.totaljobs.com. You need to find a job that you think you could apply for either now or at the end of year 13. You need to collect a job description, person specification and application form as evidence. (P1 part) Task two (P1, P2 M2) To show that you understand the relevance of these documents used in recruitment you need to complete an information sheet which analyses their contents (see attached for template). Your information sheet should 1. Describe the recruitment documentation used for the job you have chosen. What is a job description, what is a person specification and what is an application form? How are they used in business? (P1) 2. Identify the skills required on the job description. Describe how you have these skills or if you don’t have them, describe how you could develop them this year. (P2) 3. For each of the skills that you have already identified...
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...Countries INSEAD P4 Assignment MICROFINANCE in INDONESIA By Dewi BRAMONO Ming CHUNG Yoonmi EOM Kevin LAM Yenn Khan Executive Summary • • Microfinance in Indonesia can be traced back to more than a century ago, where village credit organizations (BKDs) offered small loans to villagers. Today, BRI unit desa of Indonesia is one of the most successful and profitable microfinance institutions in the world with more than 3.1 million borrowers with a gross loan portfolio of more than USD 1.7b as of Dec 2003. Indonesia’s successful experience in microfinance is further shown during the hard-hitting Asian Financial Crisis in 1997 to 1998. At a time when commercial banks were collapsing, savings in microfinance institutions rose from IDR 8 trillion in 1997 to about IDR16 trillion in 1998, as depositors sought the stability of these institutions. There are however some outstanding issues: o Inadequate outreach to the rural community o Politics impact the microfinance efforts negatively o Lack of awareness of microfinance among stakeholders o Microfinance may not be the answer for the poorest of the poor. Recommendations include: o Greater co-ordination required with the NGOs to target the poorest of poor, especially in the rural areas(through aid, training and provision of the infrastructure) o Increase the awareness of the benefits of microfinance, and to educate stakeholders accordingly. • • • Page 1 of 12 Economics and Management in Developing Countries INSEAD P4 Assignment ...
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