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Submitted By kwan44553124
Words 2810
Pages 12
Managing Financial Resources and Decision
Assignment One
As the CFO of 'New Dream' I need to study about our sources of finance including internal and external sources in fifferent stage for the development in new dream.

I will give my professional advises onto three task-it is true that profit is source of funding to run New dream?And i also need to find the sources of funding availble for a business project,and no matter it is in private sector,public listing sector or in public sector,on task two,i need to explain and assess the implications of the different sources or funding,on the last task,i need to find out the life-span situation of New Dream and evaluate appropriate source of finanace for starting-up the 'New Dream' and in different stage of New Dream's situations.

First,i would like to talk about source of funding of New Dream.New dream is a Educational institutions,it provided english courses for chinese students who want to study TOEFL.In other words,New dream mainly provided knowledge to students,we can see that New Dream make profit by providing english courses to students,about sources of funding,there are three way of company to do funding,such as make profit by selling a product for more than it costs to produce,companies can borrow money. This can be done privately through bank loans, or it can be done publicly through a debt issue. The drawback of borrowing money is the interest that must be paid to the lender,and company can generate money by selling part of itself in the form of shares to investors, which is known as equity funding.New Dream is the company which make profit by selling a product-their Precious knowledge.In there,i will talk about three internal sources and three external sources of source of funding about new dream.The three internal sources is sale of share,sale of fixed asset and debt collection.Sale of stock is that

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