Managing Finance and Budgets Seminar 7

Follow-up Activities  Preparation: read Chapter 4 (Both editions),  Describe key concepts: Characteristics of Finance Share Capital Loans, Bank Finance Leasing Other sources of finance  Exercise 15.7 – page 508-9

Questions 1  What precisely is meant by ‘Sources of Finance’?  Explain the contribution of the following to the Financing of a company:  Share Issues  Retained Profits  Long Term Loans  Which parts of the “Capital & Reserves” section of the balance sheet are available as dividends to shareholders?

Share issues Long-term loans Long-term finance Retained profits Sources of long-term finance for the typical company

Not available for dividend Share capital (at normal or par value) Capital reserves Revenue reserves Available for dividend Availability for dividends of various parts of the shareholders’ claim

Questions 2  What are the main sources of the external accounting rules in relation to limited companies?  Outline the relationships between directors, shareholders and auditors within a limited company.

Follow-up Activities  M & A Exercise 15.7 – page 508-9

Company law Accounting standards External accounting rules Stock exchange rules Sources of accounting regulations for a UK limited company listed on the Stock Exchange

Shareholders elect account review Directors Auditors elect The relationship between the shareholders, the directors and the auditors