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

Different Types of Finance and Business Ownership

Extracts from this document...

Introduction

Part A Research the small business opportunity: Name: Outback’s Jacks Bar & Grill Location: Whitford city shopping centre near Hillarys boat harbour Type of business: Bar& bistro sort of restaurant Type of business ownership: sole trader Name: Gloria & jean coffees Location: Liverpool NSW Type of business: café Type of business ownership: franchise. 1. Sources of finance available to a investor to start a business: Loan from a family member or a friend: A prospective business owner may be able to borrow money from other family members or from a friend. The length of the loan, the interest rate, if any, to be paid on the loan and any other terms of the loan must be negotiated between both parties. P.15 Doyle Credit card: A credit card can be used as a short-term source of finance for a business. A short term source of finance is a loan that should be paid back within a period of a few months p15 Doyle Bank overdraft: Is a loan made by a bank in which the customer can withdraw more money from his or her bank account than has been deposited in the account. Pg. 15 Doyle Term loan from a bank: A term loan is a source of finance obtained from a bank. ...read more.

Middle

Advantages of a sole trader -You don?t need to share profits amongst others. -There won?t be a clash of ideas and you can put the ideas you want in to the business A business operated by a sole trader is easier and less expensive to establish than a company. Disadvantages of a sole trader -A sole trader is liable to all of the debts that the business have, if the business property doesn?t cover cant cover the debts then the sole trader is has to pay these debts off with their personal property such as their house. -One person may not have enough money to start or expand a business -A sole trader has limited sources of advice when making business decisions -The business may have to be closed or be sold if the sole trader has a serious illness -Any losses made cannot be shared with other owners -It would be hard for the sole trader to have to take annual holidays unless if he has family members who have the necessary skills to run the business. 4. Identification of the GST requirements for the chosen business: A business that has the annual sales of 75000 or more must registerer with the Australian taxation office to collect GST and must charge GST on the products that it sells unless these products are free from GST. ...read more.

Conclusion

of helping you while earning interest on their spare cash Creditor funding Many businesses use their trade creditors to finance their business activities . Put simply, this means that you buy something, sell it at a profit, and then pay your suppliers with income from the sale. Bank loans Banks want to make loans to businesses, which are solvent and profitable. They are generally risk averse, and consider lending to one-person operations or new businesses without solid track records as high risk. Grants Government assistance for small business can take many forms, most commonly by way of free or low cost advisory services, information, and guidance. 7.Factors that could affect weather or not Taylor?s application is approved or not Equity: They will see your assets and see if they are probable for future economic benefits they will see cash at bank, and land and building and other assets etc. They will also see your liabilities like the loans from the banks and how much you owe them and the interest rate accounts payable or creditors, GST payable, bills and bank overdrafts, Business plan: If his business look promising enough that he will be able to pay back the loan, what part of the economy they aim to target, the quality of the business plan, .the collateral available to secure the loan, the capacity of the business to repay the loan ...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 Business, Companies and Organisation, Activity 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 Business, Companies and Organisation, Activity essays

  1. Business Studies Edexcel Coursework

    He could also think about placing it further away from residential areas and nearer to industrial areas, where is supplies could get in easier without disturbing local residents. Legislation Before Errol can construct a suitable advertising campaign for his business, he needs to consider legislation which may affect the choices he makes for his campaign.

  2. Tesco Research

    This department is of great importance to Tesco according to its activities and to effect these activities it needs the information. Activities like: - Recruitment, selection, retention and dismissal of staff - Training, development, motivating staffs and promotion of staff - Monitoring and maintenance of good working conditions - Health and Safety - Employee organisations and trade unions.

  1. Type of Business Ownership, sectors, types of bysiness and size of business

    One owner- can act quickly (No other owners to consult with) Difficult to take time off Limited financial resources Will not be an expert at all aspects of business Unlimited liability advertising Purchasing Stock control Selling Accounts Vat and income tax 2.1g Partnership A partnership describes a business where two

  2. Business Studies

    Corporate raiders and asset stripping - This involves the take over of a company and then striping it of all the assets. - This is not illegal but is considered unethical because it will affect many stakeholders involved, such as employees will be fired, shareholders will lose out on future

  1. "Moving Mountains at Marks and Spencer"

    [Keith Oates, July 1998] "The close partnerships arrangement also alleviated M&S of the need to allocate resources of its own to technological research and development activities...Decades of experience had taught the suppliers that their reward for servicing such a demanding client was a culture of continuous improvement within their businesses and the loyalty of M&S through good times and bad."

  2. In this section I will explain every one the different types of business ownership. ...

    - Disputes can arise over decisions that have to be made, or about the effort one partner is putting into the firm compared with another. - The distribution of profits can cause problems. The deed of partnership sets out who should get what, but if one partner feels another is not doing enough, there can be dissatisfaction.

  1. Starting a Small Business

    We should also pay off the debts that we may have along the way so that the business doesn't begin to struggle at some point. Me and my partner will be starting up the business out of our own funds but would need to get some money from a close

  2. Describe the Business Purposes of Four Different Businesses.

    Their headquarter is based in Atlanta, Georgia, U.S. Coca Cola have about more than 800 factories in the world. Warburtons is a British baking firm founded by Thomas Warburton in 1876 in Bolton. Warburtons produce and supply bread, bagels, rolls, pancakes, muffins, crisp, etc. to corner shop, supermarket (Asda, Tesco, Iceland, Sainsbury, etc.); Hotel and others place, where customers will buy their product.

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