• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18

What does Finance involve.

Extracts from this document...


Business studies coursework- part 5 FINANCE Finance: involves discipline concerned with determining value and making decisions. The finance function allocates resources, including the acquiring, investing, and managing of resources. Finance is to do with all the money matters connected to my business, it is mainly associated with your assets and it includes the management of the incoming cash in my business. So far I have made several decisions about the main business idea, market research to tell me what the customers what, marketing to get my voice to the public, human resource to employee my staff members and now in this part of the casework I am going to look at how I will gather the money I need to start up my business. Looking in to start-up costs, fixed cost and variable costs to find out what my break- even point is where I am not making a lose or a profit in my business. Finance deals with matters related to money and the markets. In this part of the coursework, I will be calculating all the start up costs, fixed costs and variable costs (I will be explaining more about these cost below) for my business and finding out different ways in witch I can finance my money to meet my requirements of the start up costs. I will need to make sure I have the appropriate stock and service in my business as well as high quality of equipments. Financing my business will help me meet my costs and it will tell me my break even point which is very important for my business. This point will tell me how much products/ services I need to provide each day to make sure my business does not go into a lost. Using this part I will know if I need to advertise my business further more to attract customers or if I need to make my prices go up/down accounting to the amount of profit I make as I will be finding out how much profit I am expected to make. ...read more.


Advantages of me choosing this option is that most banks generally have a low interest rate compared to other money lenders. This means I will only have to pay back a lower percentage then other money lenders. Another advantage is I will not have to go far because of the internet banking and banks are relying close to me. Similarly banks are more reliable and save to use so I will not have to go anywhere else. Disadvantages of me choosing this option is that banks can ask you to pay back more money sooner. If this was to happen to me it could cause further financial problems for my business as I might not have enough money. Also Banks have a fixed rate. This means even if I don't earn the amount I need for the week I will have to still pay it back somehow. So if I do not make mush profit in that week I cannot pay less or if I make huge profit I cannot pay more. A loan would be an easy way for me to get money form but I don't think it would be very practical for me because I will have other fixed cost to pay and adding yet another cost that if I don't manage to pay will have serious consequences which will not help me in my business. However, I would get a loan for a smaller amount and use other remaining potions to help me with the rest of the money but before I make any further decision I will move on and look at other remaining options. Option 2: My second option is to go into partnership. Partnership is where I can get partner(s) to put money in to my business to help me make up the �17,000. For example I would invest �6000 and I could get two more people to invest �5500 each. ...read more.


After working out my fixed costs I worked out my variable costs and used this to work out my average selling price (ASP) and my average variable costs (AVC). My average selling price came to �18.25. This means that every time somebody buys a product or uses my service from my business I will be making �18.25. My average variable costs came to �5.58. This means that every time somebody buys a product or uses my service from my business it will be costing me �5.58 to produce that product. After calculating all of these, I lastly calculated my break even point (Break even point is the point at which I have sold enough products/services to not make a loss but I will neither be gaining a profit. my income in the business will be neutral.) which was 186.53. I rounded this to 187 as it is much easier to deal with whole numbers and also I cannot sell half of a product or service. Keeping a close eye on finance is absolutely crucial for my business. It can make the difference between my business prospering and not being successful at all. I will need to make sure that I sell enough products/services to at least reach my break even point within 2 weeks. Finance makes sure that I manage my money so that I know efficiently about my resources and know which risks are worth taking to raise more money for my business. This is very important to my business as I do not want to fall into debts. Therefore, I will make sure my finance is handled properly as I will be keeping a close eye on it myself and I will be monitoring every step of my business. I will make sure I know where my money is being invested, what the risks are if there is any and how much profit or loss I am making to make sure my business is not a fail. ?? ?? ?? ?? Fizzy Man GCSE ...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. Marked by a teacher

    Business Finance. There are a number of sources of finance, which businesses will need ...

    3 star(s)

    This is comparable with mortgage because with a bank loan you also have to pay back the money along with interest. Many business owners who need financial help in their business will go to the bank straight away to take out a loan, but most businesses that become unsuccessful or

  2. Peer reviewed

    Management of costs.

    4 star(s)

    Task 3 Break-even- 3000 output which is 12 000. Objective- to make a profit of �10 000. 8000 units = 22 000 total cost. 8000 units = 32 000 total revenue. Output Variable Cost Fixed Costs Total Costs Total Revenue Selling Price 0 2 6000 6000 0 4 1000 2

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

    To do this I have produced a Questionnaire. After I have got my results from the questionnaire I will plot all of the results on a graph and explain what it shows in words. Questionnaire results and analysis This graph shows that in each year there are different number of

  2. Financial Services

    car repairs, and finally don't use their credit cards, take out a loan instead, but only they are sure that they will pay it off immediately. Both Martin Cox and the Reynolds family have financial service needs, but one that is pretty obvious is most probably Banks, because they all

  1. Complete Report on Askari Commercial Bank

    Joint Accounts * The bank will fulfill the stop payment instruction of any cheque lodged by any member of joint account but removal of these instruction must be signed by all the member * If any member dies then there will be no transaction is the account and balance in

  2. Costs, Profits and Break-even Analysis.

    look at the contribution being made per unit of output to the covering of fixed costs * compare targets with probable outcomes * predict the possible success of a new firm which is considering entering a market * use the graph to comment on prices, variable cost control problems and

  1. The Purpose of Keeping Accurate Accounts

    method and revaluation are the most popular ones-will normally be used for similar assets. The accruals concept, where costs are matched to the period to which they refer, means that each year's profit will be charged with its own share of the total depreciation.

  2. Finance for a new business. Mischa and Claire will need money to get them ...

    Claire and Mischa have saved �1100 to put towards the business and they own a van. They only need an extra �500, so they will be more likely to use their own savings because if they were to take out an overdraft the interest rates would be very expensive to pay back.

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