Managing Financial Resources and Decisions Essay

4721 WordsMar 19, 201319 Pages
Managing Financial Resources & Decisions By: * * Introduction Top of FormBottom of Form | In this report we are going to help Mr T Jones to start his fast food restaurant in Manchester. Mr T. Wants to start a franchise restaurant Wimpy and needs help with the financial resources and planning part. Step one, there are different souses of finance and it’s divided into internal and external finance, money that comes from within a company and the opposite any way in which company raises financing other than using its own money. (See page 4). We are now going to go thru different options of finance for Mr T franchise. | | Task 1 1.1 Range of sources of finance for different…show more content…
It can be a hard decision for the business owner because some ”angels” wish to have an equity position in the business before contributing financially, which means that the business owner may lose control over the business. | | Going Public PLC When the company have grown to an appropriate size or have valuable and exciting business opportunity available to them “going public”, selling your company shares to the public or even listing them on a stock exchange may be an option. Which can give access to huge capital and at the same time increase the value of the business owner’s shares which they retain. Some sources of finance offer special benefits. Selling stock is among the fastest ways to get access to a large amount of cash, and its money you'll never need to pay back directly. Internal sources of finance keep control within the company and don't subject you to interest payments on loans. ordinary shares and preference shares Figure 1How finances are divided in diferent parts Finance for Mr. T franchise (operated as sole trader) and for the franchise holder (operated as a Public Limited Company) There are different type of financial options for Mr. T franchise. Franchise is when you bye into existing company for example McDonalds. Some franchisers offer their own financial programs as a help or the company have partnership with a particular lending company which can
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