BTEC IN BUSINESS
BTEC IN BUSINESS
Level 3
UNIT 2 – Business Resources
Assignment 2
Name:
P4: Sources of Finance
There are two main ways that a business can access financial resources:
From within the business (internal source)
Can be from the business owner’s savings or from profits
From outside the business (external source)
There are a number of external sources that can be used to fund a business:
Banks/building societies
Hire Purchase
Leasing
Venture Capitalist
Factoring
Share issues
Friends/family
Government grant
Activity 1:
Create a mind map of all the possible different sources of finance available for a new small business venture.
Activity 2:
Leah is thinking of setting up her own silk flower-making business. She needs more information about where to access funds to help her get her business off the ground.
Produce an information pack for her describing where she can obtain different sources of finance.
Activity 3:
How do you manage your own finances?
Assignment Brief:
P4 – Describe sources of internal and external finance for a selected business
Examples of internal and external sources of finance
Detailed explanation of the advantages and disadvantages of each source of finance
Explanation of the type of resource each source may be appropriate for in the context of your selected business
Assignment template:
What is P4 discussing?
Definition of finance?
Why does a business need to have sources of finance?
What are the internal sources of finance that your business may use?
How will the business use them?
What are the advantages and disadvantages of these sources of finance for your business?
What are the external sources of finance that your business may use?
How will the business use them?
What are the advantages and disadvantages of these sources of finance for your business?
How Much Finance Can the Business Obtain?
Level 3
UNIT 2 – Business Resources
Assignment 2
Name:
P4: Sources of Finance
There are two main ways that a business can access financial resources:
From within the business (internal source)
Can be from the business owner’s savings or from profits
From outside the business (external source)
There are a number of external sources that can be used to fund a business:
Banks/building societies
Hire Purchase
Leasing
Venture Capitalist
Factoring
Share issues
Friends/family
Government grant
Activity 1:
Create a mind map of all the possible different sources of finance available for a new small business venture.
Activity 2:
Leah is thinking of setting up her own silk flower-making business. She needs more information about where to access funds to help her get her business off the ground.
Produce an information pack for her describing where she can obtain different sources of finance.
Activity 3:
How do you manage your own finances?
Assignment Brief:
P4 – Describe sources of internal and external finance for a selected business
Examples of internal and external sources of finance
Detailed explanation of the advantages and disadvantages of each source of finance
Explanation of the type of resource each source may be appropriate for in the context of your selected business
Assignment template:
What is P4 discussing?
Definition of finance?
Why does a business need to have sources of finance?
What are the internal sources of finance that your business may use?
How will the business use them?
What are the advantages and disadvantages of these sources of finance for your business?
What are the external sources of finance that your business may use?
How will the business use them?
What are the advantages and disadvantages of these sources of finance for your business?
How Much Finance Can the Business Obtain?