Managing Financial Resources and Decisions


Table of Contents
Introduction: 3
Task 1: Sources of finance for business 3
1.1: Identification of Different Sources of Finance 3
1.2: Implications of Different Sources 4
1.3: Appropriate sources of finance for business project 5
Task 2: Implication of finance as a resource 6
2.1: Costs of different sources of finance 6
2.2: Importance of Financial Planning 6
2.3: Needs of different Decision Makers 7
2.4: Impact of finance on the financial statements 7
Task 3: Making financial decision based on financial information 8
3.1: Budget Analysis and appropriate decisions 8
3.2: Unit cost and pricing decision: 9
3.3: Investment Appraisal Techniques 10
Task 4: Evaluation of financial performance of business 12
4.1: Main Financial Statements 12
4.2: Format of financial statements of different types of business 13
4.3: Interpretation of Financial Statements 13
Conclusion: 15
References: 16
Appendix: 19

Financial resource management is necessary for all departments of business whether it is small business organization or large business organization. Finance is required for the expansion of business and for buying the technologies for the company. Effective management of resource and finance provides strong base for making effective decisions related to investment, earning return and increasing the profitability of the company (Brigham and Houston, 2009). Finance is required at every phase of the company that is from commencement of the business till the end of the operation. There are various sources of finance from where a firm can acquire capital for financing their business activities and meet long term goals.
Task 1: Sources of finance for business
1.1: Identification of Different Sources of Finance
The choice sources of finance are distinct for various organizations. The every source of capital holds certain amount cost with it that a company has to bear. The...