Managing Financial Resources And Decisions
INTRODUCTION
1.1 The sources of finance available to Phan 3
1.2 The implications of the different sources of finance to Phan 4
1.3 Appropriate sources of finance for Phan 6
2.1 The costs of different sources of finance for Phan 7
2.2 The importance of financial planning to Phan 9
2.3 The information needs of different decision makers 10
2.4 The impact of finance on the financial statements to Phan 12
CONCLUSION
REFERENCES
INTRODUCTION
Finance is one of the essential elements for the existence of every business. It is not only associated with the activities but also the resource for business to implement functions. Therefore, for a started business enterprise, effectively understanding the sources of finance will help Phan perform well and develop sustainably in the market today. This report is performed to evaluate the different sources of finance as well as providing information on the implication of finance as a resource in the business.
1.1 THE SOURCES OF FINANCE AVAILABLE TO PHAN
In the current market mechanism with the increasingly fierce competitions, enterprises must continuously improve plant and equipment as well as modernizing technology. In order to achieve all these factors, the enterprises must have a large enough financial resources and use them effectively. It is believed that source of finance is a significantly important prerequisite for business process of the enterprise in general and of Phan in particular. The new business enterprise of Phan will need finance to purchase a range of items that are very essential and necessary. Phan might use more than one source of finance when starting a new business from a number of different sources such as owners’ investments, bank overdrafts, bank loans, mortgages, debt collection, leasing and hire purchase and selling shares. However, each of these