Thursday 23 February 2017

P4 Unit 2 - Describe the different INTERNAL and EXTERNAL sources of finance used by a selected business

Dear Year 12

the chosen business that we will use for this is:

To do well on this you will need to:

1. Research the different sources of finance available to a business. and describe what they are: These can be broken down into INTERNAL and EXTERNAL.

External sources include

Bank loans
Commercial mortgages
Hire purchasing
Debt factoring

Internal (personal) sources
Owners fund or own savings
Family and friends
Retained profits

Equity or share ownership
Share capital (PLC & LTD)
Venture capital
Business Angels

2. For each explain the advantages and disadvantages

3. You then need to explain if this source of finance is appropriate to the chosen business and if so what would / could it use it for?  

Business Context - think about this mobile Pizza Business here to apply your theory to. Which sources could Pizza Federicchi use to run his business?

Part one of two - Fede talks finance and gives start up business advice to year 12 BTEC Business

Part two of two

A list of the sources is clearly not acceptable as evidence for P4.  The sources should be relevant to the chosen business explained by the guest speaker and captured here above..

Assignment issue date: 3/03/2017

Assignment submission date: 10/03/2017

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