• 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...


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.


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.


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

    or more people have joined together with a view to make a profit. A partnership cannot include more than twenty people; this excludes partnerships such as accountants. The Partnership Act of 1890 regulates their activities. A partnership-trading name is likely to be the names of the partners, for example "Smith and Jones".

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

    Board of Directors are usually the main shareholders. - Small and less bureaucratic than PLCs, e.g. decisions can be taken more quickly. - Opportunities for bringing in more skills. - Easier to raise larger sums of capital. Disadvantages of being a Private limited company: - Lack of capital due to no share issue.

  1. Tesco Research

    To do the job advertisement, the HR department will have to collect information about the job role and the person specifications required for the particular job. This will help in the delivering of accurate information to the applicant. Show the different sources for which such information may be obtained *

  2. Business Studies

    generates minimal or no profit to encourage consumers to purchase goods from the business Product deletion pricing: - Used to clear stock that the business believes is no longer selling or attracting consumers Multiply unit pricing: - Discount for bulk purchases Pricing strategies to achieve the greatest financial return: Market

  1. Exmaining different types of business ownership with examples of each.

    One of the advantages was you could make your own decisions but that can also be a disadvantage because you are responsible for your actions so you are responsible for all your decisions , you have unlimited liability. Size Radiant Hair and Beauty is a micro sized business because they

  2. "Moving Mountains at Marks and Spencer"

    [Martin Christopher and Helen Peck, 2001] 2. Long Lead Time Marks and Spencer with its suppliers had an excellent relationship before the recession. "We encourage suppliers to invest to our mutual benefit, innovation comes from sharing our knowledge as a retailer with their knowledge in production, distribution, logistics or information technology."

  1. Starting a Small Business

    It will help my reputation boost up because more customers will visit my business and feel safe in the environment. The same goes for this as well if I don't comply with these regulations my business will not be a reliable place for customers to visit because they may complain

  2. Investigating Business - Ownership

    Some owners may like to be boss of themselves and doing a one-person business can make them boss of themselves so therefore they choose to be a Sole-Trader. Errol Anderson is fully responsible of the business's debts and therefore this is a risk for Errol if his business fails.

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