Financial Decision Making

Powerful Essays
Topics: Balance sheet, Asset
Financial Information Pack

Contents

Sources of Finance Page 2 Introduction Page 2 Major Sources of Finance Page 2 Internal Sources Page 2 External Sources Page 3

Business Projects and Assets Page 7 Introduction Page 7 Assets Page 7 Types of Projects Page 7

Implications of Finance and Liabilities Page 11 Introduction Page 11 What is Liability? Page 11
Implications and Costs of Financial Resources Page 11

The Working Capital Cycle Page 16 Introduction Page 16 Capital and Inner Cycles Page 16 Working Capital Cycle Page 16

Financial Information and its Importance Page 19 Introduction Page 19 What is Finance? Page 19 Financial Importance and its Assistance in Decision Making Page 19

Sources of Finance

Introduction

“Funding is the financial support provided to realise certain projects”

Whether you are a new business, or already established and looking for additional finance for new projects, this information pack will assist you in the decision making process with useful information that will help you within your financial considerations. This pack will contain information relating to the sources of finance that are available to a business, how these sources are utilised with business projects, decision making and liabilities, and also how the correct use of the working capital cycle can assist in success.

Major Sources of Finance

When considering expansion or starting up a new business, ensuring that you have enough knowledge on the different types of finance is vital, the major sources of finance will be listed with an explanation of these types, their advantages and disadvantages.

There are two different sources of business which would need considering which are the internal and external sources of finance, depending upon which approach is taken will depend upon the situation of the

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