BTEC IN BUSINESS

Topics: Finance, Economics, Corporate finance Pages: 6 (310 words) Published: February 10, 2015
BTEC IN BUSINESS
Level 3

UNIT 2 – Business Resources
Assignment 2

Name:
P4: Sources of Finance

There are two main ways that a business can access financial resources: From within the business (internal source)
Can be from the business owner’s savings or from profits
From outside the business (external source)
There are a number of external sources that can be used to fund a business: Banks/building societies

Hire Purchase

Leasing

Venture Capitalist

Factoring

Share issues

Friends/family

Government grant

Activity 1:
Create a mind map of all the possible different sources of finance available for a new small business venture.

Activity 2:
Leah is thinking of setting up her own silk flower-making business. She needs more information about where to access funds to help her get her business off the ground. Produce an information pack for her describing where she can obtain different sources of finance.

Activity 3:
How do you manage your own finances?

Assignment Brief:
P4 – Describe sources of internal and external finance for a selected business

Examples of internal and external sources of finance

Detailed explanation of the advantages and disadvantages of each source of finance

Explanation of the type of resource each source may be appropriate for in the context of your selected business

Assignment template:
What is P4 discussing?

Definition of finance?

Why does a business need to have sources of finance?

What are the internal sources of finance that your business may use?

How will the business use them?

What are the advantages and disadvantages of these sources of finance for your business?

What are the external sources of finance that your business may use?

How will the business use them?

What are the advantages and disadvantages of these sources of finance for your business?

How Much Finance Can the Business Obtain?

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