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Topics: Finance, Corporate finance, Corporation Pages: 10 (3018 words) Published: June 12, 2013
Contents
EXECUTIVE SUMMARY

I.Introduction1
II.Body2
A.Task 12
1.Available of financial sources with regards to i) Sole traders; ii) Partnerships; and iii) Limited companies2 2.Assessment of the implications of different financial sources3 3.Appropriate financial sources for each expansion stage – recommendations4 B.Task 25

1.Analysis of cost of financial sources in case of Ltd5
2.The importance of financial planning6
3.Assessment of information needs of various decision makers7 4. The impact of finance on the financial statements to Kuang

III.Conclusion9
IV.References9

Introduction

In the context of this working paper, the author, would placed himself, in the context of a financial project adviser which would provide the evaluation to Dong Kuang who is considering his investment opportunity in Vietnam. In details, this would be an intention of Dong Kuang o cooperate with Paul Mottram, who is the Bite Asia Pacific, a company specializes in the full service marketing and corporate communication network. The consultancy from the author would help Dong Kuang to evaluate with respect to different sources of finance, as well as provide information in terms of the implication of finance as a resource in the business. There has been the expectation that this consultancy would help to solve the personal concern of Dong Kuang regarding optional sources of finance which is available for growth and expansion. In details description, this working paper would assist to the investment evaluation of Dong Kuang in Vietnam with respect to the following issues: firstly, it is the available extent of financial sources towards each type of business, its implications, and the suitable financial sources for each expansion stage together with the recommendations; secondly, analysis of cost of financial sources in case of ltd, the importance of financial planning with the explanation, and the assessment of the information needs for the different decision makers.

Body

Task 1

Available of financial sources with regards to i) Sole traders; ii) Partnerships; and iii) Limited companies

In this part, the author would assess and evaluate with respect to the possible financial sources that could be used in the context of the following three types of enterprises: i) sold traders; ii) partnerships; iii) limited companies.

In common, with respect to the three enterprise types of sold traders, partnerships, and limited comapnies, it had been indicated by Singla, RK (2009), and BBC (2013) that it is important to evaluate the ultimate financial sources. However, there had been a high proportion of the sold traders to initiate with the business from the external financial sources which is not inherent from the banks as well as other usual sources. The author recommends that Dong Kuang should consider the following sources. Firstly, it is the personal investment by the sole trader himself.This type of finance could be derived from the previous capital as well as the personal saving of the sole trader. This could consist of the business money which is later used for capital and business operating costs. Secondly, Dong Kuang could consider with the bank loan in the long term perspective. However, it is not a preferential financing sources due to its risky attribute because the sole trader would have to be liable for the arising expense when conducting the lease. In addition, supposing the case when the sole trader could not pay off , there would be the risk of being reposed the necessary personal assets to pay for the debt.Thirdly, it is the leasing type in which Dong Kuang could consider leasing various operational tools, for instance the vehicles, machines and other fixed assets. There is an advantage of leading is to reduce the operational expense which could replace the property purchase. Fourthly, it is the bank overdraft which...

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BBC (2013) Sources of finance, Internet, Available from: http://www.bbc.co.uk/schools/gcsebitesize/business/finance/sourcesoffinancerev2.shtml Accessed on 15 April 2013
Bower, J
Butler, R., Davies, L., Pike, R. and Sharp, J., (1991). Strategic investment decision-making: complexities, politics and processes. Journal of Management Studies, 4 (28), 395–415.
Cathrine, Gowthrope. Business Accounting and Finance for Non Specialist. Bedford: Thomson
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Chen, S. & Clark, R.L., (1994). Management compensation and payback method in capital budgeting: a path analysis. Accounting and Business Research 24 (94), 121–132.
DeCanio, S.J., (1993). Barriers within firms to energy-efficient investments. Energy Policy 21, 906–914.
Graham and Harvey, (2001). The theory and practice of corporate finance: evidence from the field. Journal of Financial Economics 60, 187–243.
Haka, S.F., Gordon, L.A. and Pinches, G.E., (1985). Sophisticated capital budgeting
selection techniques and firm performance
Hopper, Northcott and Scapens, (2007).Issues in management accounting.London : Prentice Hall.
SANDAHL, G. & SJÖGREN, S., 2003, Capital budgeting methods among Sweden’s largest groups of companies. The state of the art and a comparison with earlier studies. International Journal of Production Economics 84, 51–69.
Singla, RK (2009) Business organizations, Published by VK Enterprise, India
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