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HND Hospitality Management

Unit code: R/601/1789

Edexcel Assessment Brief Front Sheet

Assessor Name: | Internal Verifier Name: Anne Williams | Date Issued: /2014 | Hand in Date: 27/04/2014 by midnight | Qualification:BTEC Higher National Diploma in Business | Unit Title: Finance in the Hospitality Industry |

INTRODUCTION

A business is a commercial enterprise which exists with a view to making a profit.it may be a sole trader business, partnership or a company.( Financial accounting acca f3, study manual for exam in 2013)

There are different legal private business sector structure.

Sole trader, partnership and limited companies .

Sole trader is a business owned by one person . the advantage of this business is that the owner has a full control of his business and all the profit are for him self.
The desadvantage relied on unlimited liability.

Partnership is a business owned by two people or more. The advantage is about shared decision and the desadvantage is that the profit also is shared.
Limited business is a business run by directors and the advantage is shareholders has limited liability and whenever the owner dies the busines will exist. The disadvantage is that all the profit from the busines is shared among members.

TASK 1

SOURCES OF FINANCE FOR DIFFERENT BUSINESS INCLUDE APPROPRIATE SOURCES OF FINANCE FOR THE ENCHANTED VALEY B&B.

Finance is about the money that a business can use to purchase things that is needed . however, business can need money or finance for three reasons: to buy equipment or premises, to expand the business and to start the business. We have two types of sources of finance: internal sources of finance and external sources of finance.
Internal sources of