Business Managing financial resources and decisions
Business Managing financial resources and decisions
Contents
Contents 2
Introduction 4
Question P1 4
Four sources of finances that are available to JAC SOLUTIONS 4
Venture capital 5
Bank Loan 5
Private Equity 5
Small Business Administration 6
Question P2 6
Implications of Venture Capital 6
Advantages and disadvantages of sources of Finance 6
Pros and Cons of Venture Capital Financing 6
Implications of Bank Loan 7
Pros and Cons of Bank Loans 7
Implications of Private Equity 8
Pros and Cons of Private Equity 8
Implications of SBA 8
Pros and Cons of SBA 8
Question P3 9
Sources of finances for buying the property 9
Long term loan 9
Mortgage 9
Question P4 9
Question P5 10
Importance 10
Question P6 11
Question P7 11
Question P8 12
Sales budget- 12
Production budget- 12
Material budget 12
Labour budget 12
Cash Budget 12
Master budget 13
How budget analysis is useful to make appropriate decision 13
Question P11 14
Conclusion 15
References 16
Bibliography 18
Appendices 19
Introduction
Mrs. Jessica Bell wants to setup her own company which will provide accounting and consultancy solutions. She has collected other necessary information and other aspects are also easily available to her. The name of the company is JAC SOLUTIONS. The company needs $800000 to bear the cost of establishment, working capital and seed capital. She already has 200000 pounds and needs to get 600000 pounds through sources of long term and short term finance. We need to analyze different sources of finances that can eb taken to consideration for bearing the cost of working capital, seed capital and establishment costs. We also need to determine the implications and related advantages and disadvantages of the sources of finance. Apart from this, Mrs. Jessica Bell wants to purchase a property of 350000 pounds for the business purpose and for this she is considering a long term loan for 12 years and a mortgage of 25 years. She has 70000 pounds for
Contents
Contents 2
Introduction 4
Question P1 4
Four sources of finances that are available to JAC SOLUTIONS 4
Venture capital 5
Bank Loan 5
Private Equity 5
Small Business Administration 6
Question P2 6
Implications of Venture Capital 6
Advantages and disadvantages of sources of Finance 6
Pros and Cons of Venture Capital Financing 6
Implications of Bank Loan 7
Pros and Cons of Bank Loans 7
Implications of Private Equity 8
Pros and Cons of Private Equity 8
Implications of SBA 8
Pros and Cons of SBA 8
Question P3 9
Sources of finances for buying the property 9
Long term loan 9
Mortgage 9
Question P4 9
Question P5 10
Importance 10
Question P6 11
Question P7 11
Question P8 12
Sales budget- 12
Production budget- 12
Material budget 12
Labour budget 12
Cash Budget 12
Master budget 13
How budget analysis is useful to make appropriate decision 13
Question P11 14
Conclusion 15
References 16
Bibliography 18
Appendices 19
Introduction
Mrs. Jessica Bell wants to setup her own company which will provide accounting and consultancy solutions. She has collected other necessary information and other aspects are also easily available to her. The name of the company is JAC SOLUTIONS. The company needs $800000 to bear the cost of establishment, working capital and seed capital. She already has 200000 pounds and needs to get 600000 pounds through sources of long term and short term finance. We need to analyze different sources of finances that can eb taken to consideration for bearing the cost of working capital, seed capital and establishment costs. We also need to determine the implications and related advantages and disadvantages of the sources of finance. Apart from this, Mrs. Jessica Bell wants to purchase a property of 350000 pounds for the business purpose and for this she is considering a long term loan for 12 years and a mortgage of 25 years. She has 70000 pounds for
References: Chandra. P., 2011. Financial Management. India: Tata McGraw-Hill Education. SBA, 2013, What SBA Offers to Help Small Businesses Grow. [online]. Available at: http://www.sba.gov/content/what-sba-offers-help-small-businesses-grow. [Accessed on: March 31, 2014]. Cetindamar, D., 2003. The Growth of Venture Capital: A Cross-cultural Comparison. USA: Greenwood Publishing Group. Benjamin, G., 2000. Angel Financing: How to Find and Invest in Private Equity. USA: John Wiley & Sons. Gallagher, T. J. and Andrew, J. D., 2007. Financial Management: Principles and Practice. 4. United States: Pearson Education, Inc. Swart, N., 2004 Wild, J. J., 2006. Financial Statement Analysis. 9. New Delhi: Tata McGraw-Hill Publishing Company Limited. The Times 100., 2014 Money.co.uk., 2014. Compare Secured Loans. [Online]. Available at: http://www.money.co.uk/loans/secured-loans.htm. [Accessed on: March 31, 2014]. Bloomberg., 2014. Tesco Plc (TSCO:London Stock Exchange). [Online]. Available at: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=TSCO:LN. [Accessed on:4/5/2014]. Bibliography Landstrom, E., 2012 Chandra. P., 2009. Projects 7/E. India: Tata McGraw-Hill Education. Brigham, E., 2013. Financial Management: Theory & Practice. Cengage Learning Cendrowski, H., et al., 2012 Bartzokas, A., 2004. Financial Systems, Corporate Investment in Innovation. and Venture Capital. UK: Edward Elgar Publishing. Metrick, A., 2011. Venture Capital and the Finance of Innovation. USA: John Wiley and Sons.