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Financial Services to Support Business level 3 P4 UNIT 3

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Describe the financial advice and support available for business restructuring.









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Uploaded on
January 19, 2018
Number of pages
2
Written in
2016/2017
Type
Essay
Professor(s)
Unknown
Grade
Unknown

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I will be describing the financial advice and support available for business restructuring.

Restructuring is the reorganisation of a business; businesses usually do this reduce their costs, increase
profit and improve business operation. The business will need to have a plan for their new structure
whether it is to expand, deal with debts, change staff, reduce costs and increase profit and this will allow
them to know what to focus on. Planning will allow the business to do their research on how to rescture
successfully and it will stop them from making any error that will affect the new structure. The business
will be able to identify benefits and disadvantages of the structure and this will allow them to decide
another route to take.

The business can also make a loan in order to pay debts as this will allow them to solve the debts
however this will increase more debt for them however once they deal with the first debt , the loan can
be paid later. When a debt increases to a point a business cannot handle they will need to reorganize
their business to see how they can deal with this debt and making a loan is a good option because when
they reogranise their business they will deal with all aspects which is causing debt and make a loan to
pay the debt.Loan will cause additional debt after the previous debt is paid which is why the business
can use their profit to pay off the debts.

When a business is not making profit there are many factors which can be causing this such as customer
service because if customers are not satisfied they will not make purchases and this will give the
business a bad reputation and to rectify this they will need to deal with their staff and they can do this
by providing constant traning and supervision which will allow the business to know what’s negative
about the staff however sometimes staff are better in other departments of the business.However the
business may also need to hire new higher skilled employees and this will improve customer service and
customers will be satisfied and make purchases which will increase sales.However hiring new staff is
costly because of traning , uniform and time consuming due to this the business can use out of their
profit to fund this.Also management in departments of the business may not be doing their job correctly
such as the finance department and this will affect the business accounts and the business could be
spending more than they have and management are not dealing with employees , the employees may
not do their job correctly as they have no one to help or guide them.

The business could join with another business for example a car company joining with an insurance
company and this will provide more customers and sales for the businesses. Also staff will be able to
help out in both businesses which will improve customer service.However if a business is joint with a
business they could rescrcuture by splitting up because no profit is being and businesses becoming
competitive.

A business spending too high will need to reogranise in order to find where expenses are high.Business
may have too many stores and this is costly due to all the expenses the store will require and these
stores may not be making profit which means the business can close this store down and this will
decrease their expenses and loss.Also a business can have too many staff because they believe more
staff will help business operate better however they may just need less staff which are skilled.Also
advertising may be too expensive and not helping the business make sales which means the business will

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100% Distinction standard; Business and Personal and Business Finance level 3

A triple distinction* was achieved as my final grade, Units for BTEC Business and Personal and Business Finance Level 3 available. All my work is to distinction standard. Very helpful, understandable and well written work. You will get that distinction! Feel free to ask any questions.

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