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Business 2.3

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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 costs, showing how comparison with an overall spending budget for the project could be used to identify the overspend. * The report will use break even analysis as part of the description of the problems, in this you should identify the danger to the future profitability of the project (exact figures are not required here, just an explanation of the principles with reference to

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