Managing Financial Resources and Decisions

MANAGING FINANCIAL RESOURCES AND DECISIONS

Index

Introduction

LO1. SOURCES OF FINANCE AVAILABLE TO A BUSINESS

1.1 Financial sources of finance to a business

1.2 Different sources-implications

1.3 Evaluation of different sources for a business project

LO2. IMPLICATIONS OF FINANCE AS A SOURCE WITHIN A BUSINESS

2.1 The analyse of the cost

2.2 The importance of financial planning

2.3 The assessment of the info needed to different decision makers

2.4 The impact of finance of the financial statements

LO3. FINANCIAL DECISIONS

3.1 Budgets – analyse and decisions

3.2 Unit costs and pricing

3.3 Projects and their viability through investment appraisal techniques

LO4 EVALUATION OF A FINANCIAL PERFORMANCE OF A BUSINESS

4.1 The main financial statements

4.2 The comparison of appropriate formats of financial statements for different businesses

4.3 The financial statements interpretation using ratios and comparisons both internal and external

Closing

Appendix 1&2

References

Introduction

As an experienced financial advisor , Mr. Ali Mujtaba hired me to support him with his own IT support and consultancy Company called “Blue Orange Solutions Ltd.”

His seed capital and working capital is to be around £500,000, out of which he has £150,000. For the rest of £350,000 we must find the best and suitable solution for borrowing them.

After analysing all the other parameters, this is the only aspect that needs to be carefully checked in order for Mr. Ali to reduce the risks of a borrowing solution to the minimum.

We will take into consideration all the financial aspects , costs, sources of finance, the various type of budget, the costs per unit (if applicable), we will discuss the different financial statements and see the validity of the project. Further, I will describe some of the aspects of tasks that me and Mr. Ali decide to take into consideration regarding the financial consultancy for his own company to be released on the market ”Blue...