OCTO/NOV 2025 (OTE 2601)
PORTFOLIO
DUE DATE 10 OCTOBER 2025
ALL QUESTIONS ANSWERED
PASS GUARANTEED
PLAGIARISM
, Financial Management Functions for a Startup Company
1. Estimation of Capital Requirements
How: I would start by creating a comprehensive financial forecast that
details startup expenses, working capital needs, and anticipated costs for
future expansion. This process would involve estimating operational costs
(like rent, salaries, and utilities), production expenses, and marketing fees.
Additionally, I would develop sales forecasts and growth objectives for the
upcoming 3 to 5 years.
Why:
Accurately estimating capital needs ensures the company has adequate
funds to operate efficiently without experiencing cash flow issues. It also
helps avoid excessive borrowing, which could lead to a heavier debt load.
Correct estimation enables the business to allocate resources strategically
towards growth and profitability.
2. Choice of Sources of Funds
How:
I would analyze various funding sources, including equity financing (such
as angel investors, venture capital, or stock issuance) and debt financing
(bank loans or credit lines). For long-term growth, equity financing would
alleviate repayment pressure, while short-term capital needs could be
addressed through bank overdrafts or trade credit.
Why:
PORTFOLIO
DUE DATE 10 OCTOBER 2025
ALL QUESTIONS ANSWERED
PASS GUARANTEED
PLAGIARISM
, Financial Management Functions for a Startup Company
1. Estimation of Capital Requirements
How: I would start by creating a comprehensive financial forecast that
details startup expenses, working capital needs, and anticipated costs for
future expansion. This process would involve estimating operational costs
(like rent, salaries, and utilities), production expenses, and marketing fees.
Additionally, I would develop sales forecasts and growth objectives for the
upcoming 3 to 5 years.
Why:
Accurately estimating capital needs ensures the company has adequate
funds to operate efficiently without experiencing cash flow issues. It also
helps avoid excessive borrowing, which could lead to a heavier debt load.
Correct estimation enables the business to allocate resources strategically
towards growth and profitability.
2. Choice of Sources of Funds
How:
I would analyze various funding sources, including equity financing (such
as angel investors, venture capital, or stock issuance) and debt financing
(bank loans or credit lines). For long-term growth, equity financing would
alleviate repayment pressure, while short-term capital needs could be
addressed through bank overdrafts or trade credit.
Why:
