Unit 2 P4
UNIT:2 P4
P4: Describe sources of internal and external finance for a selected business.
Introduction: In this particular task of the unit I will describe the internal and external finance sources for a particular selected business. In this task I will use the same company as I did before in the previous part of the unit. The name of the company is : Media Markt. In this task we will get to know where money actually comes from to actually create such a big company which is well known of its electronic products.
What are the main ways in which the Business can access its financial resources?
In this particular task I’m using the company: Mediamarkt. The business can access its financial resources in two ways: * From within the business( Internal Source). * From outside the business( External Source).
Internal Source:
The internal Sources for the owner of Media Markt can be from the business savings or the owners own savings. For Media Markt the owner had to use his own personal savings to start the business, as we see Media Markt at the moment, very big and so much product, It wasn’t like this years ago, because the owner had to start small and in this way he grew each year by selling good products and by fulfilling the the needs of the customers.
Capital from Profits:
Once Media Markt was started the owner operated accurately . The money he made as a profit he puts it back into the business as a investment to expand the company properly. In this way he kept on doing that and now as we can see Media Markt is one of the biggest companies selling high quality eletronic devices.
In which way does the Internal Source give a Advantage to the business?
As the business is being started by the owner of Media Markt Himself he doesn’t have to be pay any interest at all to a particular bank, because he used his own personal savings to start the business. The good thing about the owner of Media Markt is that he didn’t lend money from different
P4: Describe sources of internal and external finance for a selected business.
Introduction: In this particular task of the unit I will describe the internal and external finance sources for a particular selected business. In this task I will use the same company as I did before in the previous part of the unit. The name of the company is : Media Markt. In this task we will get to know where money actually comes from to actually create such a big company which is well known of its electronic products.
What are the main ways in which the Business can access its financial resources?
In this particular task I’m using the company: Mediamarkt. The business can access its financial resources in two ways: * From within the business( Internal Source). * From outside the business( External Source).
Internal Source:
The internal Sources for the owner of Media Markt can be from the business savings or the owners own savings. For Media Markt the owner had to use his own personal savings to start the business, as we see Media Markt at the moment, very big and so much product, It wasn’t like this years ago, because the owner had to start small and in this way he grew each year by selling good products and by fulfilling the the needs of the customers.
Capital from Profits:
Once Media Markt was started the owner operated accurately . The money he made as a profit he puts it back into the business as a investment to expand the company properly. In this way he kept on doing that and now as we can see Media Markt is one of the biggest companies selling high quality eletronic devices.
In which way does the Internal Source give a Advantage to the business?
As the business is being started by the owner of Media Markt Himself he doesn’t have to be pay any interest at all to a particular bank, because he used his own personal savings to start the business. The good thing about the owner of Media Markt is that he didn’t lend money from different