business studies - finance

ooks printed 10 years ago.
             Businesses need finance because any organisation, large or small, needs money. It might be needed to set up the business, or it might be needed to pay the bills. If the firm does well, it may need money to help it expand and move into a new premises.
             The Browns plan to open their business named 'CD City' in the tertiary sector. They will need a small-medium sized property in a high street type location. Their target market they believe after extensive market research proves to be of ages 12-35, and as secondary research shows these age groups are most likely to purchase CD based products.
             The Browns need finance because as they have a small number of owners the finance they are able to provide is going to be limited and they will have to seek additional finance to cover their start-up costs. These include premises, machinery, raw materials, and equipment fixtures and fittings. Also as their own savings are limited the Browns must cover their operating costs for a few months until sales build up. Ultimately the Browns will have to borrow all of this money/finance to start-up and help boost the initial running of the business.
             The different types of finance are EXTERNAL and INTERNAL. External could include start-up capital, long-term finance, and short-term finance:
             Start-up Capital is finance provided by the owners of a business. It is permanent finance as it will need to stay in the business as long as it is operating.
             Long-Term Finance is money that is borrowed by the owners that has to be repaid but after a period of more than 1 year. The most likely source of this finance would be a personnel loan (for a sole trader) from a bank.
             Short-Term Finance is money that is borrowed by the owners that has to be repaid in a period of less than 1 year. A sole trader's most likely sourc
             ...

More Essays:

APA     MLA     Chicago
business studies - finance. (1969, December 31). In MegaEssays.com. Retrieved 04:30, March 29, 2024, from https://www.megaessays.com/viewpaper/17130.html