Managing financial resources and decisions Essay

5320 Words Nov 6th, 2013 22 Pages
BUSINESS FINANCE

MANAGING FINANCIAL RESOURCES AND DECISIONS

GRIGOR GRIGOROV/MRC/20967/NHD
MONT ROSE COLLEGE

25.03.2013

Task 1
Programme title
HND Business
Assessor/Tutor
Yannick Fansi
Unit
4 – Business Finance
Assignment title
1 - Managing Financial Resources and Decisions
Student
Grigor Petrov Grigorov

Date
25/03/2013

1.1 Identify the sources of finance available to a business.
There are a number of sources that are available for the businessmen for ensuring that the profits of the business soar. It is important that the selection and choice is taken by critically analyzing the situation.
Bank Loan: This the most common type of financing that
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On the other hand, the costs of the internal sources of finance are not as high as the external sources. The company has to encounter an opportunity cost when utilizing the internal sources of finance, and decides whatever is in the best favor of the company. This helps the company in earning more and in ensuring that the right funds are invested so that the company is able to generate profits.

Task 2
From: Grigor Grigorov, Student ID: MRC/20967/HND
To: Yannick Fansi
Subject: Managing Financial Resources and Decisions
Date: 25/03/2013

2.2. Explain the importance of financial planning
Financial planning is the planning of the funds that the company will require in the future to meet the demands of the customer. It is important for the companies to ensure that the right steps are taken and that they help the activities of the company in a positive manner. This ensures that the company has enough funds to meet any unforeseen event in the future. Due to the nature of this activity, its importance is great and the significance of financial planning is important for the company. It helps in maintaining a proper balance between the outflow and the inflow of funds and avoids the hindrance in the growth and expansion of the company. This means that the aspect of financial planning is given proper importance in the business and that proper steps are taken so that the people work in the most efficient manner. With this, the businessmen and the managers

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