Finance

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0.1 Introduction of Finance in your organization………………………….............. Task: 1: Be able to explore the sources of finance available to Sainsbury’s 1.1: Identify the sources of finance available to Sainsbury’s............................................ 1.2: assess the implications of the different sources of finance in Sainsbury’s…………. 1.3: select appropriate sources of finance for a project in Sainsbury’s………………….. Task: 2: Be able to analyses the implications of finance as a resource within a business 2.1: assess and compare the costs of different sources of finance in your Sainsbury’s…….. 2.2: explain the importance of financial planning in Sainsbury’s……………………………. 2.3: describe the information needs of different decision makers……………………………. 2.4: describe the impact of finance on the financial statements in Sainsbury’s………………. Task:3: be able to make financial decisions based on financial information in Sainsbury’s 3.1: Analyse budgets and make appropriate decisions in Sainsbury’s………………………….. 3.2: Calculate unit costs and make pricing decisions using relevant information………………. 3.3: Assess the viability of a project in Sainsbury’s using investment appraisal techniques……. Task:4: Be able to analyse and evaluate the financial performance of Sainsbury’s 4.1: Explain the purpose of the main financial statements in Sainsbury’s………………………… 4.2: Describe the difference between the formats of financial statements for different types of business………………………………………………………………………………………… 4.3: Analyse financial statements using appropriate ratios and comparisons, both internal and external of Sainsbury’s…………………………………………………………………………… Conclusion………………………………………………………………………………………. Reference………………………………………………………………………………………… Self evaluation…………………………………………………………………………………….

Definition:
According to Webster’s Ninth New Collegiate Dictionary” the science on study of the management of funds and the management of fund as the system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities.” TASK:1: BE ABLE TO EXPLORE THE SOURCES OF FINANCE AVAILABLE TO SAINSBURY’s: 1.1: Identify the sources of finance available to Sainsbury’s: In general, a “sources of finance” is how you get money for a major deposit. A source may you paycheck form employment, from unemployment, from investments, or family help. There are two major sources of financing available to Sainsbury: * Internal sources

* External sources
The souces of finance that come form the business assets or activities are “Internal sources of finance” Retained profits: If business (Sainsbury) had made profit after paying all its cost in a successful trading year, it could use some of that profit to finance future activities. sales of existing assets: Sainsbury can finance new activities or pay off debts by selling its assets such as property, fixtures and fitting, machinery, vehicles etc. cut down stock level: Businesses will usually hold some stock. It can be useful for a business (Sainsbury) if there is an unexpected increase in demand from customer. Stock level tends to rise during economic slowdowns as goods are not sold and pile up instead. The finance that comes from outside the business (Sainsbury) known as External source finance. There are three types of external sources of finance. Long term, medium term, short term. Long term sources of finance: In business (Sainsbury), funds required for working capital and fixed capital is known as long term finance. It includes share, debenture, long term loans and grants. Medium term sources of finance: the sources which are used to finance a business (Sainsbury) for a period of more than a year but less than 10 years are medium term sources of finance. these type of finance is obtained for expansion or modernisation of existing plants. it includes leasing, hire purchase, medium term loan. Short term sources of finance: the sources of finance...
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