1.1 Analyze The Different Costs In A Given Business. .Rent

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1.1 Analyze the different costs in a given business Rent £10,000 pcm
Salaries £22,000 pcm
Insurance £1,000 pcm
Electricity £1,500 pcm
Cleaning £500 pcm
Bank Loan repayments £3,000 pcm
Advertising & marketing £2,000 pcm Total fixed costs = £40,000

A fixed cost does not change with the …show more content…

Table 2.3 Fig2.3 Analyze this whole process and change and evaluate the manager’s proposal of reduction of price.

3.1 Different sources of finance
Sources of finance can be classified into:
• Internal sources which is raised from within the organisation.
• External which is raised from an outside source.

The main sources of internal finance are:
• Owner’s investment
• Retained profits
• Sale of stock
• Sale of fixed assets
Debt collection
• Debt factoring
The main sources of external finance are:
• Bank Loan
• Credit Cards
• Additional Partners
• Share Issue
• Leasing
• Hire Purchase
• Mortgage
• Trade Credit
• Government Grants

Financing is needed to start a business and to increase the businesses profitability. There are several sources to consider when looking for start-up financing. The financial needs of a business will vary according to the type and size of the business. For example, processing businesses are usually capital intensive, large amounts of capital. Retail businesses and small businesses usually require less capital. Requiring.
The sources of finance which are needed in starting or expanding a given business organization are:
Internal sources:
The main internal sources of finance for a start-up are as follows:
Personal sources These are the most important sources of finance for a start-up, and we deal with them in more detail in a later section.

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