Sources of Finance BUSINESS SUITABILITY You will Understand that the type of business organisation will determine the suitability of the source of finance.

Slides:

Advertisements

Similar presentations

The Financial Plan, Part: Finding Sources of Funds

Advertisements

1. 2a Business ownership Part a Business ownership Part 1 UK business ownership This means:  They are owned by private individuals  These individuals.

Public and Private Limited Companies PLC’s and Ltd’s.

Unit 2 Assignment 4-P4 sources of finance

Companies 101 James Hoffmann. Companies A company is a business or association formed to manufacture or supply products or services for profit. A company.

Financing Your Business

SOURCES OF FINANCE.

Sweet Opportunities Case Study

Learning outcomes AllCan define a Private and Public limited company MostCan analyse the advantages and disadvantages SomeCan relate to a real life example.

Copyright 2005 – Biz/ed Business Ownership BTEC Business.

UNDERSTANDING BUSINESS

Business Finance.

Different Types Of Business

Legal Structures Tell me three things... about the topic we are studying. Or, you learnt in the last lesson. STARTE R.

Ownership. UK business ownership This means: They are owned by private individuals These individuals risk their own money The owners’ reward is the profit.

Types of Businesses Unit 1 Chapter 2.

IB Business and Management

Level 1 Business Studies

Business ownership Types of business ownership / responsibilities, investment & profits.

PMNQBM - BICS1 A partnership is a business association between 2 to 20 people. (Professionals e.g doctors, solicitors can have more than 20) Common partnerships.

Goals Understand the three major forms of business ownership Determine when each form of business ownership is most appropriate Recognize other specialized.

Sources of Finance. Sources of finance We already know that a new business will have many costs e.g. –Premises, stock, wages, bills etc. They need money.

Level 1 Business Studies

Chapter 20 The importance of limited liability p96-99

Theory on Sources of Finance For Lesson 9. Sources of Finance  Some sources of finance will be available as soon as the business starts up  Some sources.

Sources of Finance Time Periods for Finance Finance is generally considered to be either: Short-termMedium-termLong-term 1 to 3 years3 to 10 yearsOver.

Financing Growth You need to know internal and external sources of finance. You also need to know the advantages and disadvantages of a range of different.

Getting Started. Definition: A business plan is a document that discusses in detail who is setting up the business, what the product/service is, how it.

Types of Business Ownership

C. Financing a Small Business 4.00 Explain the fundamentals of financing a small business Discuss sources used in financing a small business.

3.1 Sources of Financing Chapter 18 Part 2.

IB Business and Management

Introduction to Business Chapter 6 Business Ownership.

What is the link?.

213 Liability AS Edexcel New Specification 2015 Business

Business Structures How can businesses be legally organized?

Types of Business Ownership The Right Fit. Sole Proprietorship Business owned and operated by one person ADVANTAGES decisions are made by only the owner.

1 - 1 CAREER OPPORTUNITIES IN FINANCE MONEY AND CAPITAL MARKETS INVESTMENT FINANCIAL MANAGEMENT.

Unit 18. The big picture When starting a business you will need to raise some money to be able to get the business started. There are two ways of raising.

STARTER Does anyone know: – Why an overdraft would not be used to fund a long-term project? – Why the government may offer a grant to a large organisation.

2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt SBE 4.02.

Starter  ewsid_ / stm ewsid_ / stm.

CHAPTER Section 13.1 Start-Up Investment Section 13.2 Obtaining Financing Financing Your Business.

Sole Traders Private Limited Companies Public Limited Companies Partnerships State Owned Companies Franchises Forms of Ownership In this chapter we will.

Raising Finance What you need to know!.

Chapter 33 entrepreneurial concepts Section 33.1 Entrepreneurship

A-level Accounting Year 12

Task 1 - Finish exam Question from last lesson

Business Ownership BTEC Business.

Legal Types of Business

Forms of Business organisation

Types of Business Ownership

By the end of the lesson you should:

7.00 Understand marketing and business management.

Legal Structures Mahbuba Begum.

Forms of Business organisation

Date: 13th January 2016 Title: Obtaining Finance

Forms of Business Organisation

Lesson Objectives All students will understand Most students will

Obtaining finance.

Getting Started.

Businesses Ch8.

Level 1 Business Studies

Financing Your Business

Introduction to Business

Level 1 Business Studies

6 Chapter Business Ownership and Operations pp

Ownership and liability

Business Ownership BTEC Business.

Presentation transcript:

Sources of Finance BUSINESS SUITABILITY You will Understand that the type of business organisation will determine the suitability of the source of finance used

Recap We said that the type of finance used will depend on a number of factors: – Why the finance is needed – The amount – The firm’s profit levels – Risk level – E.g. Would a small business easily get a loan

1 What are the 4 main legal structures a business can set up as? BASICALLY A BUSINESS WILL SET UP AS EITHER A: Sole trader – one person Partnership – 2-20 people Private Limited Company – sell shares to friends and family Public Limited Company – sell shares on the stock exchange

Structures Key facts: – rprise/company-structures.shtml rprise/company-structures.shtml

Definitions Unlimited liability – Responsible for all the debts of the business Limited Liability – Lose only amount invested

Sole Trader Possible sources of finance Owner’s savings, bank loans Becoming a partnership Issues for consideration Evidence that the business has potential Credit rating of business Business plan

Becoming a partnership Not only investment what else?

Partnership Possible sources of finance Partner’s savings, loans and hire purchase/leasing Key issues for consideration Suitability of partner Should they form a limited company Unlimited liability

Private Limited Company Possible sources of finance – Banks loan, leasing/hire purchase, trade credit, government grants, venture capitalists, private share issues Key issues for consideration Disagreement Hard finding shareholders Loss of control Collateral may be requested

Think of a PUBLIC limited company

Public Limited Company Possible sources of finance Trade credit, leasing/hire purchase, government grants and bank loans, venture capitalists, public share issues Key issues for consideration State of economy Ability to relocate = government help Recent financial performance Company reputation

Interactive Quiz soffinance/quiz.html soffinance/quiz.html

Extension questions Explain why a new business needs finance? Describe the implications of a firm with unlimited liability. Discuss what type of finance might be suitable for the launch of a restaurant.

How to answer an exam type question