Preview

Mfrd 1

Powerful Essays
Open Document
Open Document
3049 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Mfrd 1
Contents

Introduction 2 Identify and describe the various sources of finance available to Company 3 The implication of the different sources of finance to Company related to risk, legal, financial and dilution of control, and bankrupt. 4 Select the appropriate sources of finance for Company and make recommendations on the best ways of raising finance. 6 Assess and compare various costs involved with each sources of finance 8 Explain the importance of financial planning for Company 9 The information needs of different decision makers 11 The impact of finance on the financial statements 12 Conclusion 14 Reference 15

INTRODUCTION
Dong Kuang is a good friend of Paul Mottram the Executive Vice President, Asia Pacific. The company’s full service marketing and corporate communications network helps companies make the most of business opportunities in this vibrant, growing region every day. Corporation’s multicultural, multilingual; team has a ten-year track record of helping local, regional and multinational companies engage with a variety of stakeholders.
Bite has presence in the major Asian markets, with offices in Bangalore, Beijing, Hong Kong, Mumbai, New Delhi, Shanghai, Singapore and Sydney, and affiliates region wide.

Acting as a financial project adviser to Kuang, my responsibility is evaluating the different sources of finance and providing information on the implication of finance as a resource in the business.

Indentify the sources of finance available to business
All businesses need money to start up and pay bills. Kuang needs more financial sources to support his company’s establishment in Vietnam. Depending on the size and development stage of business, the selection of appropriate sources of finance is important to success.
Start up stage
In the initial stage, Kuang and Mottram can make use of some kind of financial sources below:
Partnership, Co-founder (between Kuang and his friend – Paul Mottram, Executive Vice

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Fin 516 Mini Case Week 2

    • 718 Words
    • 3 Pages

    3. What is the financial risk of the company (the debt to total capitalization ratio)?…

    • 718 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    In order to create an initiative for growth, an analysis of the company 's short term and long term financing needs are assessed to determine strategies for the company to manage working capital. The suggested initiative to increase XYZ Company, Inc. revenue over the next five years is by acquiring assets through a merger with UVW Company to produce more of product X. Companies must be able to manage growth either through the acquisition of assets or through the capital budgeting process. Through the acquisition of assets, external financing will be required. Growing quickly will allow XYZ Company to gain a larger market share and reinforce its viable position in the marketplace. Expanding too rapidly can have consequences. If the company has too much debt-financing and cash flows are reduced the company will risk being unable to repay its debts. Management must ensure the business can grow, what funding may be needed, and determine the sustainable growth rate.…

    • 575 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Fi 516 Mini Case

    • 1337 Words
    • 6 Pages

    3. What is the financial risk of the company (the LT debt to total capitalization ratio)?…

    • 1337 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Whitbread Plc

    • 320 Words
    • 2 Pages

    Financial structure: how the business is funded between shareholders and loans, and the degree of risk…

    • 320 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    2. Describe at least two sources you would use for funding your company. (1-2 sentences.…

    • 309 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    (See attached excel files with the 2 scenarios (pessimistic and most likely). In both me need a loan from the bank to meet all commitments of the company, dividends, CAPEX and Bank Debt)…

    • 377 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Zodiac Aerospace

    • 1422 Words
    • 6 Pages

    Zodiac Aerospace is the world leader in aerospace equipment and systems, intended for commercial aircraft, regional aircraft, business jets as well as helicopters and space. In its infancy in 1896, the company created by Frenchman Maurice Mallet, contributed to the development of aeronautics designing airships and airplanes. Thanks to its innovative spirit, the…

    • 1422 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Miss

    • 1240 Words
    • 5 Pages

    company experienced sharp increases in both sales and earnings. Because of this recent growth, Kaka, the company`s treasurer, wants to make sure that available funds are being…

    • 1240 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Chapter 8 Mishkin Notes

    • 1349 Words
    • 6 Pages

    An Economic Analysis of Financial Structure Why do Financial Institutions Exist? (Why is Indirect Finance so Important?) Chapter 8 Chapter Preview W e take a closer look at why financial institutions exist and how they promote economic efficiency. Topics include: • A Few Basic Facts About Financial Structure • Transaction Costs • Asymmetric Information: Adverse Selection and Moral Hazard Chapter Preview (cont.) • The Lemons Problem: How Adverse Selection Influences Financial Structure • How Moral Hazard Affects the Choice Between Debt and Equity Contracts • How Moral Hazard Influences Financial Structure in Debt Markets 1 Basic Facts About Financial Structure…

    • 1349 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. Learners will learn how to evaluate these different sources and compare how they are used. They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting. Decisions relating to pricing and investment appraisal are also considered within the unit. Finally, learners will learn and apply techniques used to evaluate financial performance.…

    • 1098 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    You could/ could not identify the sources of the finance available to a business.Your understanding in this section was very poor / poor / reasonable / good / excellent.…

    • 1148 Words
    • 5 Pages
    Satisfactory Essays
  • Better Essays

    EDEXCEL finance assignment

    • 3176 Words
    • 13 Pages

    There are many different sources of finance available to Mr Norman for investment in order to expand his business. These include:…

    • 3176 Words
    • 13 Pages
    Better Essays
  • Satisfactory Essays

    2.1 HUMAN RESOURCE MANAGEMENT 1. “Human Resource Management is a proactive approach and personnel management is a reactive approach to perform the same set of function related to managing human resources.” – Do you agree with this statement? Substantiate. 2.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    EF5043

    • 671 Words
    • 6 Pages

    financial concepts for a firm to run its business. The second theme focuses on the…

    • 671 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Pob Sba

    • 1361 Words
    • 6 Pages

    B’s car mart was founded in 2011 as a partnership. B’s car mart is being created to satisfy the need for a large selection of quality – used cars in the Mandeville region. The business will be financed by investments, loans and personal savings. B’s car mart is located off the new green roundabout across the “Fontana Pharmacy” billboard. At B’s car mart we understand that vehicle purchasing is a necessity, but sometimes an unpleasant experience. Our goal is:…

    • 1361 Words
    • 6 Pages
    Powerful Essays