Assess The Implications Of The Different Sources

1943 Words Dec 15th, 2015 8 Pages
1.2) Assess the implications of the different sources:-

In this part of the task, I will be exploring the implications of the different types of sources that are available to Wasqol’s as a business. There are various implications which need to be considered before choosing the appropriate source of finance, therefore criteria would need to be followed before obtaining finance.

To begin with, reason for obtaining the money would need to be considered. In the case of Wasqols, Tim and Shazia are seeking finance to fund the refurbishment of the new restaurant, and therefore they would need to acquire many new items whilst also completing a full renovation of the interior and exterior of the premises. The status of the business would also need to be considered. In this case Wasqols is a small company, and therefore they have unlimited liability, this means that the business owners take full responsibility of the debts of the business- this means that there will be a level of risk when gaining external sources of finance to fund the project.

Another factor that should be considered is how quickly the money is needed. In the case of businesses, if the money is not needed urgently, the owners can spend more time raising the money needed, and these sources would come at a lower cost. However if they money is needed very urgently for the purposes of the business, then higher costs to obtain the money may be involved. In the case of Wasqols, Tim and Shazia would need to refurbish…
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