Re: Finance essay Q
Q27. How can different sources of funds help a business achieve its financial objectives.
What approach u guys take for this one. I said they used debt/equity financing to support my case study businesses expansion to America. and all the new Operational, marketing and hr strategies that these funds provided for and that it achieved the objectives. You?
I talked about debt/equity as well as retained profits+owner's equity
I sorta just said anything with the case studies.
Seasonal variation affects cash flow, short term loans help purchase needed inputs to produce products --> liquidity, hence solvency
long term for growth (buying a new factory)
long term for R&D --> innovation (competitive advantage)
new equipment which helps efficiency
loans to purchase greater volume of stock in anticipation of seasonal variation i.e. increased spending in new years and christmas period
venture capitalists --> IT boom
how majority of successful companies began from simple origins, and the injection of large sums of money facilitated growth because they had the capital to advertise, fund marketing research, operations etc etc
i'm not very happy with my linking with profitability objects though
i did mention that since facebook became a public company, they were able to grow and purchase other companies etc etc
i'm really scared i failed today