Managing Financial Assignment
University of Libya
BETC program
4/24/2013
Managing Financial Resources and Decisions
Semester 1, 2nd assignment
Under the supervision of: Mr. Mohamed akhter
Student : Abduraof Abdulhakim Abdullah
Question 1:
Identify the sources of Finance available to a business ?
The Most important concepts and think in managing financial resources is that where and how to access sources of finance for a business.
Also we know there are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business.
Additionally Large organizations are able to use a wider variety of finance sources than are smaller ones. Savings are an obvious way of putting money into a business. A small business can also borrow from families and friends. In contrast, companies raise finance by issuing shares. Large companies often have thousands of different shareholders.
So as we have studied in our Lectures before ,we three types of sources of financial .
1_Short term sources of finanacil:
This source which mean you will going to make money in short time using tactical goals to get money available for short period of time .
The purpose of :
1. It facilitates the smooth running of business operations by meeting day to day financial requirements.
2. It enables firms to hold stock of raw materials and finished product.
3.with the availability of short-term finance goods can be sold on credit. Sales are for a certain period and collection of moneyfrom debtors takes time. During this time gap, production continues and money will be needed to finance various operations of theBusiness.
4. Short-term finance becomes more essential when it is necessary to increase the volume of production at a short notice.
5. Short-term funds are also required to allow flow of cash during the operating cycle. Operating cycle refers to the time gap between commencement of production and realization of sales.
Here we have many sources of
BETC program
4/24/2013
Managing Financial Resources and Decisions
Semester 1, 2nd assignment
Under the supervision of: Mr. Mohamed akhter
Student : Abduraof Abdulhakim Abdullah
Question 1:
Identify the sources of Finance available to a business ?
The Most important concepts and think in managing financial resources is that where and how to access sources of finance for a business.
Also we know there are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business.
Additionally Large organizations are able to use a wider variety of finance sources than are smaller ones. Savings are an obvious way of putting money into a business. A small business can also borrow from families and friends. In contrast, companies raise finance by issuing shares. Large companies often have thousands of different shareholders.
So as we have studied in our Lectures before ,we three types of sources of financial .
1_Short term sources of finanacil:
This source which mean you will going to make money in short time using tactical goals to get money available for short period of time .
The purpose of :
1. It facilitates the smooth running of business operations by meeting day to day financial requirements.
2. It enables firms to hold stock of raw materials and finished product.
3.with the availability of short-term finance goods can be sold on credit. Sales are for a certain period and collection of moneyfrom debtors takes time. During this time gap, production continues and money will be needed to finance various operations of theBusiness.
4. Short-term finance becomes more essential when it is necessary to increase the volume of production at a short notice.
5. Short-term funds are also required to allow flow of cash during the operating cycle. Operating cycle refers to the time gap between commencement of production and realization of sales.
Here we have many sources of