1
BUSINESS
RESOURCES
BY DAYNA TYE
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 2
Contents
Page One | Title Page
Page Two | Contents
Page Three | Sources of Finance
Page Four | Page Three continued
Page Five | Page Four continued
Page Six | Page Five continued
Page Seven | Page Six continued
Page Eight | Internal / External Sources
Page Nine | Profit and Loss Accounts
Page Ten | Balance Sheets
Page Eleven | Comparisons
Page Twelve | Budgeting
Page Thirteen | Page Twelve continued
Page Fourteen | Page Thirteen continued
Page Fifteen | Break Even
Page Sixteen | Managing Resources & the Control of Costs and Budgets
Page Seventeen | Page Sixteen continued
Page Eighteen | Ratio Analysis
Page Nineteen | Page Eighteen continued
Page Twenty | Conclusion
Page Twenty-one | Bibliography / References
Sources of Finance
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 3
Internal sources:
Source Advantages Disadvantag Length Suitability of
es (short, method
medium,
long)
Savings: The The business If the business It could vary This method is
owner of the does not have needs more depending on suitable as the
business often to pay back money and how much business
has to use
any interest the owner money the knows it can
their own
personal on money the doesn’t have owner always rely on
savings to owner invests any because invested back the owner for
start the because they they’ve into their money
business. still have already business and although it
complete invested all how long it would not be
control over they can, they may take suitable if the
what happens will have to go them to pay owner had put
within the to banks to back the a lot of money
business itself. lend the owner. into the
money or they business and
will have to then it not go
ask family and according to
friends for plan because
money to help the owner will
them out. not be able to
be paid back
for the money
of theirs that
was put into
making the
business
better. It is
also not
suitable
because the
business
cannot rely
solely on
personal
savings
otherwise the
owner of the
business
would not
have enough
money to live.
1. P The Using profit to Using profit It is suitable to
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 4
rofit: a advantages of expand the could vary for use the profit
financial gain, using profit to business the length of they make to
especially the expand the means that time as the make the
difference business is they will not business may business
between the that it is have any then take a better as they
amount money the money to long time to have already
earned and business has start the new make a new made the
the amount already made year / sector profit because money and it
spent in therefore with. If the they have to can be made
buying, investing it business uses pay off what back too. It is
operating, or back into the all the money they’ve used not suitable to
producing business it made, they to money for use profit if
something. means they would have no but it could the business
would not money left to also be short has only
have to pay spend if the because the recently hit
back any business had business may break-even.
interest any issues or make a new
because it is needed to pay profit quickly.
something the someone for
business something.
already has.
External sources:
Source Advantages Disadvantag Length Suitability
es (short, of method
medium,
long)
Banks: A bank They would The business A bank loan Using bank
loan is the most give as much would have to provides loans is
common form money as the pay back medium or suitable if the
of loan capital business what they long-term business
for a business. needed if have finance. The knows that
The bank sets they had a borrowed with bank provides they are
the fixed period suitable interest on loans for going to make
over which the business plan top. If the companies the money in
loan is provided and could business does over 3, 5 or order to pay it
the rate of prove that not have 10 years. The back; if they
interest and the they would be enough loan has to be do not think
timing and able to pay it money to pay paid back they can
amount of back. the bank, within a make the
repayments. they can certain time money back,
come and frame, if they using a bank
take assets have not paid loan is not a
from the it all back on good idea.
business to time, the Banks lend
pay back their bank can money to
loans. come and those who
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 5
take the want to
company’s forward their
assets. business and
make it
better; if they
cannot do this
and pay the
money back,
bank loans
are not a
good option.
1. Bu Companies If the It could be If the
ilding societies: will be able to business has any length of business
a financial set up a bank poor credit time needs to keep
organization account in history or depending on their money
which pays order to keep outstanding how long the safe and
interest on their money. county court business is cannot afford
investments by judgements, open and to keep all the
its members they may not needs an money in a
and lends be able to set account for. safe at the
capital for the up an account Most will go business
purchase or meaning they for long term location,
improvement of will have as they will having a bank
houses. nowhere to want to be account
keep their able to keep would be
money. their money beneficial.
in the bank
for a longer
time as
possible.
1. Hir The business The business It could be for It would be
e purchase: a can use the has to pay in any length of suitable only
system by item they instalments to time if the
which one pays have hired use one item. depending on company did
for a thing in whilst paying Sometimes what they not have
regular for it. They the item may product is enough
instalments are able to not be worth needed for, money to pay
while having continue the money what the uses for the item
the use of it. using the they are of the item on their own
product they paying for are and how accord. If the
have hired and in the often it would business was
whilst paying long run it be used by small, the
for it. would be the company company may
cheaper to hiring it. not want to
buy the item buy the
from the product
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
BUSINESS
RESOURCES
BY DAYNA TYE
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 2
Contents
Page One | Title Page
Page Two | Contents
Page Three | Sources of Finance
Page Four | Page Three continued
Page Five | Page Four continued
Page Six | Page Five continued
Page Seven | Page Six continued
Page Eight | Internal / External Sources
Page Nine | Profit and Loss Accounts
Page Ten | Balance Sheets
Page Eleven | Comparisons
Page Twelve | Budgeting
Page Thirteen | Page Twelve continued
Page Fourteen | Page Thirteen continued
Page Fifteen | Break Even
Page Sixteen | Managing Resources & the Control of Costs and Budgets
Page Seventeen | Page Sixteen continued
Page Eighteen | Ratio Analysis
Page Nineteen | Page Eighteen continued
Page Twenty | Conclusion
Page Twenty-one | Bibliography / References
Sources of Finance
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 3
Internal sources:
Source Advantages Disadvantag Length Suitability of
es (short, method
medium,
long)
Savings: The The business If the business It could vary This method is
owner of the does not have needs more depending on suitable as the
business often to pay back money and how much business
has to use
any interest the owner money the knows it can
their own
personal on money the doesn’t have owner always rely on
savings to owner invests any because invested back the owner for
start the because they they’ve into their money
business. still have already business and although it
complete invested all how long it would not be
control over they can, they may take suitable if the
what happens will have to go them to pay owner had put
within the to banks to back the a lot of money
business itself. lend the owner. into the
money or they business and
will have to then it not go
ask family and according to
friends for plan because
money to help the owner will
them out. not be able to
be paid back
for the money
of theirs that
was put into
making the
business
better. It is
also not
suitable
because the
business
cannot rely
solely on
personal
savings
otherwise the
owner of the
business
would not
have enough
money to live.
1. P The Using profit to Using profit It is suitable to
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 4
rofit: a advantages of expand the could vary for use the profit
financial gain, using profit to business the length of they make to
especially the expand the means that time as the make the
difference business is they will not business may business
between the that it is have any then take a better as they
amount money the money to long time to have already
earned and business has start the new make a new made the
the amount already made year / sector profit because money and it
spent in therefore with. If the they have to can be made
buying, investing it business uses pay off what back too. It is
operating, or back into the all the money they’ve used not suitable to
producing business it made, they to money for use profit if
something. means they would have no but it could the business
would not money left to also be short has only
have to pay spend if the because the recently hit
back any business had business may break-even.
interest any issues or make a new
because it is needed to pay profit quickly.
something the someone for
business something.
already has.
External sources:
Source Advantages Disadvantag Length Suitability
es (short, of method
medium,
long)
Banks: A bank They would The business A bank loan Using bank
loan is the most give as much would have to provides loans is
common form money as the pay back medium or suitable if the
of loan capital business what they long-term business
for a business. needed if have finance. The knows that
The bank sets they had a borrowed with bank provides they are
the fixed period suitable interest on loans for going to make
over which the business plan top. If the companies the money in
loan is provided and could business does over 3, 5 or order to pay it
the rate of prove that not have 10 years. The back; if they
interest and the they would be enough loan has to be do not think
timing and able to pay it money to pay paid back they can
amount of back. the bank, within a make the
repayments. they can certain time money back,
come and frame, if they using a bank
take assets have not paid loan is not a
from the it all back on good idea.
business to time, the Banks lend
pay back their bank can money to
loans. come and those who
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
, 5
take the want to
company’s forward their
assets. business and
make it
better; if they
cannot do this
and pay the
money back,
bank loans
are not a
good option.
1. Bu Companies If the It could be If the
ilding societies: will be able to business has any length of business
a financial set up a bank poor credit time needs to keep
organization account in history or depending on their money
which pays order to keep outstanding how long the safe and
interest on their money. county court business is cannot afford
investments by judgements, open and to keep all the
its members they may not needs an money in a
and lends be able to set account for. safe at the
capital for the up an account Most will go business
purchase or meaning they for long term location,
improvement of will have as they will having a bank
houses. nowhere to want to be account
keep their able to keep would be
money. their money beneficial.
in the bank
for a longer
time as
possible.
1. Hir The business The business It could be for It would be
e purchase: a can use the has to pay in any length of suitable only
system by item they instalments to time if the
which one pays have hired use one item. depending on company did
for a thing in whilst paying Sometimes what they not have
regular for it. They the item may product is enough
instalments are able to not be worth needed for, money to pay
while having continue the money what the uses for the item
the use of it. using the they are of the item on their own
product they paying for are and how accord. If the
have hired and in the often it would business was
whilst paying long run it be used by small, the
for it. would be the company company may
cheaper to hiring it. not want to
buy the item buy the
from the product
DAYNA TYE | BTEC L3 EXTENDED DIPLOMA IN BUSINESS STUDIES | 2 – BUSINESS
RESOURCES (MRS. SPARNON)
