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Unit 2 - Business Resources P4 P5

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Unit 2 - Business Resources P4 Describe sources of internal and external finance for a selected business P5 Interpret the contents of a trading and profit and loss account and balance sheet for a selected company

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  • December 16, 2017
  • 4
  • 2017/2018
  • Essay
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  • unit 2 business resources
  • p4 describe sources of internal and external finance for a selected business
  • p5 interpret the contents of a trading and profit and loss account and balance sheet for a sele

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3  reviews

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By: Schizophragma_Holacanthus.ciliaris • 6 year ago

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By: Orontium_Synchiropus.picturatus • 6 year ago

Thanks for your great review, I hope my work was useful for you. If still need more, I have already upload the other 9 units for Btec Level 3 90 Credit Diploma in Business. Hope you would like to see them.

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By: Elaeagnus_Pseudochromis.fridmani • 6 year ago

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By: Orontium_Synchiropus.picturatus • 6 year ago

Thanks for your great review, I hope my work was useful for you. If still need more, I have already upload the other 9 units for Btec Level 3 90 Credit Diploma in Business. Hope you would like to see them.

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By: Tolmiea_Ginglymostoma.cirratum • 6 year ago

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By: Orontium_Synchiropus.picturatus • 6 year ago

Hey, thanks for you review. I would like from if you can tell me, if there is anything not good in my work, or any improvement that I can take in consideration. I have already upload the other 9 units for Btec Level 3 90 Credit Diploma in Business. Hope you would like to see them. Thanks !

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Abdulalah Al-Jobore
Unit 2 Business resources

P4 Describe sources of internal and external finance for a selected business
P5 Interpret the contents of a trading and profit and loss account and balance
sheet for a selected company
The in this task I am going to describes the sources of internal and external finance for
Debenhams.
Internal sources of finance are funds found inside the business. For example, the profits can
be kept back to fund extension. On the other hand, the business can offer resources (things
it owns) that are no longer needed to free up cash.

Internal sources Definition and relate to Stockport College
Owner’s savings This is cash which comes from the owner own savings. It might be as
start-up capital used when the business is setting up and It might be
as extra capital – maybe used for extension. This is a long-term source
of finance. This cash does not have to repaid and there is no interest
is payable. An addition, there is a limit of the amount of money an
owner can invest.

The owners of Debenhams will be able to know exactly how much
money is available to run their business and will not have to spend a
lot of time securing other forms of funding form investors or banks.
They will retain full owner ship of Debenhams, which mean they will
receive 100% of the future profits.

Capital from profits Once a business is operating, it might have the ability to invest money
that it makes as profits back in the business. This means much more
profits might be made later on the future. The measure of profits to
invest back in the business – or in new businesses – will depend how
much profits the owner need to keep for themselves against the
amount they need the business to grow. For some business cannot
use the capital from profits – for example, if the business it a charity
or not for profits organisation.

If Debenhams sell their assets (equipment, furniture etc.), the gain on
sale of these assets is considered as capital from profits which mean it
is ordinary income for the business as opposed to a capital gain.

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