Introduction In this unit my aim is to understand the access sources of finance for a business and the skills financial information for decision making. I will be learning how finance information is recorded and how to use this information to make decision for example in planning and budgeting. Task 1 1. 1 Evaluate the amount of available financing, for instance, venture capitalists and other equity financeers can offer millions of dollars to small business owners. Bank loans and small-business loans often do not offer such large amounts of financing.
Debt, equity and grant, debt financing involves obtaining capital by going into debt. An example of debt financing includes loans. Equity financing consists of obtaining capital in exchange for a share of your company. Examples of equity financing include investors or stock 1. 2 A) Tax effects The taxes affect a business in the capital it will be able to spend on expanding the business. The more money they pay in taxes, the less money they have to hire more employees and grow the business. Taxes also cut into profits and the company’s stock value.
This is the reason why the government can create jobs by easing the tax burden on company workers. When company’s start hiring they have a larger number of people they have paying taxes, and the more people working the lower the tax rate can be, plus the more money going into Social Security. Also lower taxes on the workers inability for them to save and invest in more companies and their personal future. b) 1. 1://www. ehow. com/how_6522588_select-sources-finance-business. html#ixzz2OGLEYw00 http://www. ehow. com/how_6522588_select-sources-finance-business. html#ixzz2OGKQ34PI