• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Alternative methods of investing 50,000

Extracts from this document...

Introduction

There are many different ways of investing �50,000. It is a very large amount of money and therefore opens many options. I could put the money into a savings account or current account, as the money would earn interest. The advantage of investing the money into a bank is that nothing more needs to be done. Different banks offer different interest rates on the different accounts. Internet banks usually offer higher interest rates as they have lower overhead costs, as they do not require large premises or many employees. This gives them a competitive advantage. Current Account- HSBC has an interest rate of 4.03% AER where as Lloyds TSB has an interest rate of 3.99% AER. ...read more.

Middle

However with the risk comes the possibility of big profits. �50,000 is a very large sum of money so the returns would also be large. It is therefore important to select the right companies to invest into. Setting up my own business is another way of investing the money. It is a very expensive and risky option but in the long term it could possibly make more profits than the stock market. On the other hand it could loose all the money if it were not successful. Setting up an independent business is a very risky method of investment and should be thought through carefully. When setting up a business there are four factors, which you must consider. ...read more.

Conclusion

This could make a person a lot of money or do exactly the opposite and loose them everything. Each factor of production stands to gain something from the business becoming a success. The owners of the land get their rent. The employees get wages. Investors/ banks get money via interest or a share of the company. The entrepreneurs make profit for the risk they have taken. When setting up a business it is important to concentrate equally on each factor. The combination of these factors is a successful business. The business that I would set up would be Fish & Chip Shop. There is a very big market for fast food. The business would be tapping into the market. The initial premises would be situated in Hounslow. The business would be run by 4-5 employees ?? ?? ?? ?? Ryan Austin Business Studies Course Work ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. In this assignment I am opening a tuck shop in the school grounds and ...

    The business documents are in this order: - Purchase order Sales invoice The Delivery Note The Credit Note The Remittance Advice Slip Cheque The Statement of Account The petty Cash Voucher To produce business documents even faster we can make them on a computer.

  2. Management Accounting Report.

    People might not want to buy the product at reduced price as they might think that it is something wrong with it e.g. the quality, not long lasting life etc. Other companies might take advantages and sell the same product for less when you decide to go back to the original selling price.

  1. Costs, Profits and Break-even Analysis.

    We will see exactly why this is later. Cash Flow Learning Trail Part 5: Why Cash Flows Statements and Profit and Loss Accounts Differ As we stated in Part 1, Cash Flow Statements do not show the profitability of a business, they show either an historic view, or a prediction of the flows of cash into and out of the business.

  2. This report has been produced as evidence for Unit 9 - 'Financial Services' - ...

    It is a good idea to make sure that all your non-mortgage debt is paid off before you start buying shares. 3. Remember that share dealing involves risk, share prices can go down as well as up and that you could lose all your money if you buy into a company that subsequently goes bust.

  1. Exploring business purposes

    (NOT FINISHED!!!!!!!!!!!!!) The growth and decline sectors I am going to demonstrate the areas of growth and declines in the primary, secondary and tertiary classifications of business activities. Classifying businesses means that it is easier to discover trends in diverse sectors and industries and contrast these.

  2. Investment Portfolio - Shares and other investments

    46 0.81% 25-Feb-08 18.03 0.53 3.03% 5699.8 55.3 0.98% 22-Feb-08 17.5 0.74 4.42% 5644.5 -18.5 -0.33% 21-Feb-08 16.76 1.43 9.33% 5663 85.7 1.54% 20-Feb-08 15.33 -0.99 -6.07% 5577.3 -111.3 -1.96% 19-Feb-08 16.32 0.12 0.74% 5688.6 54.6 0.97% 18-Feb-08 16.2 -1.04 -6.03% 5634 -45.8 -0.81% 15-Feb-08 17.24 -0.31 -1.77% 5679.8 -68.4

  1. Complete Report on Askari Commercial Bank

    Corporate Excellence Awards for 2002 & 03 The Management Association of Pakistan (MAP) Best Corporate / Institutional Internet Bank in Pakistan Award for 2004 by Global Finance magazine Best Consumer Internet Bank in Pakistan Award for 2002, 03 & 04 by Global Finance magazine The Best Bank in Pakistan Award

  2. Financial Services

    expensive asset, he will not be able to afford it in the short term he will need to take out a loan from a bank, and pay back within a certain amount of time but obviously with an interest. I will be talking about this in more detail later on in this task.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work