HND Edexel MFRD
Task One Part A
a)
Sources of fund include individual benefits and other resources make a great resource of investment. They are ready in side and purchase costs are minimal, therefore there will not be any interest charged on a loan from the lender or discussing profits with traders. A major drawback includes the risk of losing the individual benefits if Emaar Qualities strikes a reduction. Another resource of fund includes loans from banks. Emaar Qualities may have to make use of resources such property, large equipment & stock as security to secure the loan. The benefit enables Emaar Qualities to keep their cash on side to use as operating investment in their business. Additionally, if a reduction occurs, Emaar may be able to protect its resources by announcing bankruptcy. However, disadvantages include paying attention on the loan on time regardless of profit or loss of Emaar. The attention compensated to the lender is an expense. Attracting traders can help Emaar to flourish without putting all of the chance of reduction on Emaar alone. These traders may be effective associates in the company with the drawback of providing a certain amount of control over Emaar. Although Emaar stocks the threat with its traders, it will also have to discuss the income. Federal govt allows give Emaar a jump start however, Emaar might not get financing from the govt as certain requirements apply. As Emaar is already an large company, it can certainly use maintain income to spend money on itself. Maintained income are benefit reinvested into Emaar. One advantage to retained income is that investment is available for development. Developments and expansion are expensive but necessary to stay aggressive. Developing new structures needs research and development, and these costs can be quite high. They are better financed from retained income. There is also improved come back on investment strategies & investor value. Companies use retained income to get. Investments can be a
a)
Sources of fund include individual benefits and other resources make a great resource of investment. They are ready in side and purchase costs are minimal, therefore there will not be any interest charged on a loan from the lender or discussing profits with traders. A major drawback includes the risk of losing the individual benefits if Emaar Qualities strikes a reduction. Another resource of fund includes loans from banks. Emaar Qualities may have to make use of resources such property, large equipment & stock as security to secure the loan. The benefit enables Emaar Qualities to keep their cash on side to use as operating investment in their business. Additionally, if a reduction occurs, Emaar may be able to protect its resources by announcing bankruptcy. However, disadvantages include paying attention on the loan on time regardless of profit or loss of Emaar. The attention compensated to the lender is an expense. Attracting traders can help Emaar to flourish without putting all of the chance of reduction on Emaar alone. These traders may be effective associates in the company with the drawback of providing a certain amount of control over Emaar. Although Emaar stocks the threat with its traders, it will also have to discuss the income. Federal govt allows give Emaar a jump start however, Emaar might not get financing from the govt as certain requirements apply. As Emaar is already an large company, it can certainly use maintain income to spend money on itself. Maintained income are benefit reinvested into Emaar. One advantage to retained income is that investment is available for development. Developments and expansion are expensive but necessary to stay aggressive. Developing new structures needs research and development, and these costs can be quite high. They are better financed from retained income. There is also improved come back on investment strategies & investor value. Companies use retained income to get. Investments can be a
References: Tiffany C. Wright. (2014). Why Is the Internal Rate of Return Important to an Organization?. Simon & Schuster. (2007). Business enterprises. House of Commons, The Stationery Office. (1 Sep 2008). Business & Economics. Andreas Keller. (2013). Finance & Financial Management.