OTE2601 PORTFOLIO 2025
2 2025
Unique Number:
Due date: October 2025
1. ESTIMATION OF CAPITAL REQUIREMENTS
The first step in financial management is to estimate how much capital the business needs
to start operations and support its future growth. For a startup, this is crucial because
underestimating capital can lead to shortages and delays, while overestimating can create
unnecessary costs such as interest or idle resources.
Capital requirements are generally divided into:
Fixed capital: money needed for long-term assets like buildings, machinery,
technology, and office equipment.
Working capital: money needed for short-term needs such as salaries, rent, raw
materials, utilities, and marketing.
As a financial manager, I would carefully assess expected expenses, revenue forecasts, and
growth targets to determine how much capital is required. For example, a startup in the retail
sector may need funds for setting up premises, purchasing stock, paying employees, and
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
PORTFOLIO INTRODUCTION
This portfolio focuses on five key financial management functions that are central to
achieving these objectives: estimation of capital requirements, choice of sources of
funds, investment of funds, management of cash, and financial controls. Each of
these functions plays a unique role in building a financially strong and sustainable
company. For example, estimating capital ensures that the company raises enough
funds without overburdening itself with unnecessary costs, while effective cash
management ensures that day-to-day operations continue smoothly.
Throughout this portfolio, I will explain how these functions can be applied in the
context of a startup company, why they are important, and what impact they have on
business growth. Practical examples, tools, and theories of financial management
will be used to demonstrate how these functions can transform a startup into a
profitable and competitive enterprise.
1. ESTIMATION OF CAPITAL REQUIREMENTS
The first step in financial management is to estimate how much capital the business
needs to start operations and support its future growth. For a startup, this is crucial
because underestimating capital can lead to shortages and delays, while
overestimating can create unnecessary costs such as interest or idle resources.
Capital requirements are generally divided into:
Fixed capital: money needed for long-term assets like buildings, machinery,
technology, and office equipment.
Working capital: money needed for short-term needs such as salaries, rent,
raw materials, utilities, and marketing.
As a financial manager, I would carefully assess expected expenses, revenue
forecasts, and growth targets to determine how much capital is required. For
example, a startup in the retail sector may need funds for setting up premises,
purchasing stock, paying employees, and running advertising campaigns.
2 2025
Unique Number:
Due date: October 2025
1. ESTIMATION OF CAPITAL REQUIREMENTS
The first step in financial management is to estimate how much capital the business needs
to start operations and support its future growth. For a startup, this is crucial because
underestimating capital can lead to shortages and delays, while overestimating can create
unnecessary costs such as interest or idle resources.
Capital requirements are generally divided into:
Fixed capital: money needed for long-term assets like buildings, machinery,
technology, and office equipment.
Working capital: money needed for short-term needs such as salaries, rent, raw
materials, utilities, and marketing.
As a financial manager, I would carefully assess expected expenses, revenue forecasts, and
growth targets to determine how much capital is required. For example, a startup in the retail
sector may need funds for setting up premises, purchasing stock, paying employees, and
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
PORTFOLIO INTRODUCTION
This portfolio focuses on five key financial management functions that are central to
achieving these objectives: estimation of capital requirements, choice of sources of
funds, investment of funds, management of cash, and financial controls. Each of
these functions plays a unique role in building a financially strong and sustainable
company. For example, estimating capital ensures that the company raises enough
funds without overburdening itself with unnecessary costs, while effective cash
management ensures that day-to-day operations continue smoothly.
Throughout this portfolio, I will explain how these functions can be applied in the
context of a startup company, why they are important, and what impact they have on
business growth. Practical examples, tools, and theories of financial management
will be used to demonstrate how these functions can transform a startup into a
profitable and competitive enterprise.
1. ESTIMATION OF CAPITAL REQUIREMENTS
The first step in financial management is to estimate how much capital the business
needs to start operations and support its future growth. For a startup, this is crucial
because underestimating capital can lead to shortages and delays, while
overestimating can create unnecessary costs such as interest or idle resources.
Capital requirements are generally divided into:
Fixed capital: money needed for long-term assets like buildings, machinery,
technology, and office equipment.
Working capital: money needed for short-term needs such as salaries, rent,
raw materials, utilities, and marketing.
As a financial manager, I would carefully assess expected expenses, revenue
forecasts, and growth targets to determine how much capital is required. For
example, a startup in the retail sector may need funds for setting up premises,
purchasing stock, paying employees, and running advertising campaigns.
