Managing Financial Decisions Case Study - sources of finance

Authors Avatar by gulyaaslanova (student)

Managing Financial Resources and Decisions

Name:                      Gulya Aslanova

Subject:                        Raising Funds; Recommendations

Tutor:                       Rolland

Date Submitted:       1st October 2012 

Raising Funds

Summary

Jacinda has faced the problem of acquisition of motorcycles and bicycles for her business. She would like to get an advice on the appropriate way of financing the purchase of two motorbikes and two bicycles. What source of finance are most appropriate for her needs and why? I conducted the following research, and the results are given below, along with my recommendations.

Background

 Jacinda owns a sandwich bar that also delivers snacks to local offices and shops.  The business has been successful and because of excellent service offered as well as the good quality of food, there has been an increased demand for the delivery service. Jacinda would like to increase the number of motorbikes and bicycles used to deliver the food to the offices in the city centre.

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Main Body

As you can see from reading above, Jacinda need advice how to do it in this situation. In this case Yacinda can use Internal or External Sources of Finance. There are several options that I can suggest for het to help to choose the right one. Let’s start from External Sources of Finance.

The 1st option for her could be to use Personal/Self Sources. Of course, these also could include Retained Profits which definition is the cash that is generated by the business when it trades profitably.  If her income is constant, certainly the best way is to buy all motorcycles and ...

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