Unit 2 Managing Financial Resource Assignment Help (GC01323)

Introduction

The aim of this paper is to analyze the financial resources and financial positions for a particular business, called Clariton. This paper first discussed several financial resources for both incorporated and unincorporated businesses. Then, it discussed how several sources of finance have implications on the business. Next, several sources of finance are discussed that are suitable for Clariton. In the second part, this paper discusses the impact of different options of finance on the business. The third part of this paper discusses the cash budget, the calculation of cost per unit for Non-production companies, and viability of projects, and the evaluation of several financial statements. Finally, the format and statement of financial statement and the business financial positions are evaluated focusing on Clairton’s business.

Task 1

1.1 Identify the sources of finance available to a) unincorporated business; and b) incorporated business.

Sources of finance for an unincorporated business

Several sources of finance for the unincorporated businesses are discussed as follows along with their implications.

Venture capital: VC (Venture capital) is a kind of unique equity, financing form which has given by organizations or resources to early-stage, small and increasing organizations that are considered to have improved development prospective, or that have established high development. Venture capital organizations or resources devoted to these earlier organizations in trade for ownership equity in the organization’s stake they provide in.

Personal saving: a person can save money from company profit, unused money. After that, the company can invest in the business these saving money when they need it. It can help an organization in many ways and the company also becomes profitable.

Retained profit: the organization can invest money and earn benefits. With these retained benefits, the company can again invest in the business and buy necessary equipment and machinery and again can earn profits from the business.

Working capital: Clairton can apply its working capital that is known as the short-term cash, for everyday functions, for example, for salaries, invoice payment, bills, rent and stationery. Funds from family members and relatives: family members can also invest in the business. The company inspires family members to invest in the business. If they invest more in the business, the organization can buy their machinery and equipment and can improve their organization.

Additional partners: additional partners mean extra partners who can also invest in the business. The organization will be benefited if they also invest in the company and develop their business (Elliott and Elliott, 2014).

Sources of finance for incorporated business

Several sources of finance for the incorporated business are discussed as follows along with their implications.

Venture capital: VC (Venture capital) is a kind of unique equity, financing form which has given by organizations or resources to early-stage, small and increasing organizations that are considered to have improved development prospective, or that have established high development. Venture capital organizations or resources devoted to these earlier organizations in trade for ownership equity in the organization’s stake they provide in.

Personal saving: a person can save money from company profit, unused money. After that, the company can invest in the business these saving money when they need it. It can help an organization in many ways and the company also becomes profitable.

Retained profit: the organization can invest money and earn benefits. With these retained benefits, the company can again invest in the business and buy necessary equipment and machinery and again can earn profits from the business.

Working capital: Clairton can apply its working capital that is known as the short-term cash, for everyday functions, for example, for salaries, invoice payment, bills, rent and stationery. Funds from family members and relatives: family members can also invest in the business. The company inspires family members to invest in the business. If they invest more in the business, the organization can buy their machinery and equipment and can improve their organization.

Additional partners: additional partners mean extra partners who can also invest in the business. The organization will be benefited if they also invest in the company and develop their business (Elliott and Elliott, 2014).

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