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Sources of Funding for a Business Venture - Free Essay Example

Sample details Pages: 4 Words: 1080 Downloads: 9 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? In every business, there is need for funding to ensure a stable running of the business. Before coming up with any form of business, all aspiring business people need to look for a stable source of income to put in place all the required things for the running of the business. Starting any business without a stable capital might lead to the collapse of the business in a very short time. The most important thing that potential businessmen should do before considering any source to fund their businesses is to ask themselves some few questions such as; how big is my market? What is the time scale for the business the required profit? What type of return is expected on a given venture? Individual or personal finances are a major source of funding a business venture. People come up with business ventures at different stages in their lives. Some business people start organizations at the beginning of their careers. Most of the entrepreneurs start operating compani es much later in their lives with personal assets that will use in financing their business activities. It is vital for entrepreneurs to invest their individual savings in business ideas because it shows that the entrepreneur is confident on his idea. By doing so, the business man encourages other to consider the idea more seriously. Lack of feasible business ideas makes investors lose everything (Jennings 800). Debt financing is another source of funding a business venture. This involves the process of raising capital from banks by the investors. Commercial banks mainly provide such form of debts to companies willing to start operating the business. Business loans are made by bankers through term loans, credit lines and mortgages. A line of credit debt is the biggest amount that a borrower can access at any given time from the bank. In this context, borrowers need to work with the bank early so as to be able to get the line of credit before the organization needs the funds becau se if the lending institutions have no idea about their clientacirc;â‚ ¬Ã¢â€ž ¢s investment particulars, they will not accept credit. Efforts to get line of credit load instantly are mainly in effective. In addition to these services, lending institutions provide a five to ten year term finances that are used in funding the equipments. Due to the economic advantages that extend beyond one year when by investing in equipment, banks are mainly open to the idea of providing money to investors to buy equipment that will generate income. The revenues should match the interest that is going to be earned from such funding. Equity financing can be used to fund business ventures also. This mode of funding transfers the risk from the entrepreneur to the investor himself. In this process, entrepreneurs can contribute funds by selling preferred stock to investors. This means that the entrepreneur sacrifices some of his voting legalities to the investor. Although many organizations offer e quity financing, the venture capital that belongs to the institution makes the biggest part of equity financing. Government funds can also be used to run the venture. Most of the successful business ventures have received grants and guarantees from the government. The government should see the investment as a component in the development of the economy. Any form of funding or financial aid by the government means that the same government is committed to the economic development of the country. Another reason why the venture should agree to be funded by grants is because of the mutual benefit that will exist between the government and the organization. The government plays a major role in making sure that the business succeeds without any form of obstacle in their way. Another reason why the venture should consider accepting the grants from the government is because of the employment opportunities that will create for its citizens. This will lead to improved living standards for t he citizens and a positive growth in the economy (Fiore 200). Equity financing is involving investors in the process of entrepreneurship. In this case, the investors have a say in the business venture. The investors are entitled to voting rights and other legal requirements. Equity financing is something that should be considered by entrepreneurs. Comparing equity financing and loans, it is necessary that entrepreneurs first consider the right form of funding the venture. Before using any of these sources, it is important that the entrepreneur understands the basics behind the process. Loans are preferred by most of the people who are willing to come up with a venture business venture. The reason why loans are preferred is because the legalities are not transferred from entrepreneurs to investors. The transfer of legalities from entrepreneurs to investors in equity financing has led to fear by entrepreneurs to start business using equity financing. Also, equity financing is perce ived by most entrepreneurs a form of exploitation rather than investment. The idea of the new venture going public immediately is not wise. The investment needs to establish itself first before it considers going public. By going public, it means that the investment must have fully established itself well to an extent of staring to list its stocks in the stock exchange. Those companies whose stocks are listed at stock exchange have established themselves well and have a lot of market connections. It is hard for new investments to list their stocks in stocks market because they will face stiff competition from the already established firms. Initial public offers by new business organizations have made such ventures to operate at losses and finally end up closing. It demands that such organizations first undertake the necessary steps to make sure that it finds itself in a stable position to go public. Rushing is likely to cause unnecessary losses that will undermine the face of the investment. Break even analysis The insurance place Cost descriptions Fixed costs $ Variable expenses % Direct labor 1,000 10 Supplies 20,000 3 Repairs maintenance 7,000 0.5 Advertising 2,000 0.5 Rent 500 2 Accounting and legal 1000 4 Telephone 100 1 Utilities 3000 5 Insurance 5000 2 Interest 6000 3 Depreciation 2000 4 Debt payment 8000 2 Owneracirc;â‚ ¬Ã¢â€ž ¢s draw 1000 2 Total fixed expenses 56,600 Total variable expenses 40 % Break even sales level 22, 640 Fixed costs are permanent costs regardless of the number of items sold. All the start up costs like rent, debt etc are considered fixed costs. On the other hand, variable costs are recurring costs that a business man absorbs with every unit sold. As the business and sales grow, one can start appropriating labor together with other items as variable expenses if they make se nse in the business. Don’t waste time! Our writers will create an original "Sources of Funding for a Business Venture" essay for you Create order

Analysis Of The Movie The Rib - 890 Words

Adam’s Rib is a film in which two lawyers who are married to each other end up opposing each other in an important court case. Both husband and wife are tied down to the case by their own ideals and beliefs which starts to challenge their relationship outside of the courtroom as well. Adam’s Rib challenges traditional gender roles and stereotypes, but also proves that working to prove one’s own ideals rather than for the good of the world can be just as destructive as the sexist ideas one’s trying to fight. The film starts off with housewife Doris Attinger performing what appears to be an attempted murder of her philandering husband Warren Attinger and the woman he was cheating on her with. The next morning this event is in the newspaper, which catches the eye of lawyer Amanda Bonner spending breakfast with her husband Adam Bonner who is also a lawyer. Amanda argues that in the male dominated society, a woman who uses violence against a cheating husband is considered crazy, but a man doing the same thing would be considered justified. Adam Bonner argues that no matter what sex, they must abide by the law. This is the point in the film where the theme starts to become clear. Later, when Amanda finds out her husband has been assigned to defend the husband Warren Attinger, outraged, she decides to defend the wife in the case. At this point the two main protagonists, Adam and Amanda, while ultimately sharing the same beliefs, have different ideals when faced against a similarShow MoreRelatedProstitution: A Modern Form of Slavery694 Words   |  3 Pagesfemale is not so pliant. 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Health and Social Policy

Question: Write an essay about the roles of European union in making and shaping up their social policy among other European members state. This is the criteria to follow below thanks An exceptionally well written essay. The essay directly addresses the question. The essay is exceptionally clear. The essay has a very clear thread of argument throughout. The structure of the essay is very clear. The essay is very well argued. Each point is justified either by other arguments, or by appropriate citations of the literature. There is a bibliography and it is correctly formatted with full publisher information and in alphabetical order by author. There are no spelling mistakes or grammatical errors. Answer: Introduction The decisions that are made by the European Union or EU are quite often termed to be complex. This is one of the reasons, the union needs to adopt and implement transparent system through which the changes in the social factors can be implemented in the right manner. The policies that are drafted by the EU have to be interacted with the members, as this will help in increasing the level of understanding. Besides this, it will help in handling the challenging aspects along with the adoption of the improved methods for introducing the changes that are required for the execution of different tasks. The prevalence of the social acts or policies drafted by the company cannot be overlooked at all for a simple fact that it is meant to benefit the members. The policies that are drafted for the members are considered to be quite important and this is meant to help in analysing the challenges that exists within the system. The strategies for implementing the changes for the company have always been quite simple and effective. It was meant to help in the sustainable growth of the system. The objectives of the EU have been effectively communicated with the members with the prime objective of catering the needs of the members. Thus it becomes relevant to analyze the changes and other factor that needs to be implemented by the company for handling the needs and preferences of the members (Aaronson, 2011) Discussion The European Union is a result of determination with respect to European politicians to reduce the issues in Europe after World War II. The goal is to bring countries together with economic support and cooperation. The roles and responsibilities of European Union have tremendously increased in terms of new issues. European Union was developed by the Treaty of Maastricht in the year 1993. The impact of European integration on industrial relations links with each other and the process of decision making in the European Union is both simple as well as complex. (Paulet, 2014) In European Union, wage determination is the vital role of the social partners in individual member states in terms of growth and stability. The movement in wage levels from one country to other leads to the increase in the real and nominal wages when compared to the different circumstances. Thus the terms of labor cost develops an essence of responsiveness in the EMU context. Also, the change in information creates huge convergence between national systems. It has high diversity and there is an increase in the working time in the European Union. There is a significant change in timings and process that increases the size of part time work force. Like the EU policy, the industrial relations are continuous process. It has huge impact that leads to discussion and also increases other issues. There is a strong need to identify both the top-down and bottom-up approach that aims to increase the competition and coordination which could lead to success. The European Union is an economic and political union that consists of 27 states of member and it is strongly associated in Europe. It has developed the single market with respect to standardized system of laws and policies that is applied to all member states. It assures free movement of products, services and capital. This way, it manages common policies on growth and development. It also has developed the limited role in foreign policy. It operates among six countries. They promote European harmony to develop the single market and to enable the shift in products, people and services. (Archik, 2014) European Union countries are not at loggerheads these days. It has managed to heal the divisions which were exposed in the 20th century in the two World Wars. It also has awarded the Nobel peace prize for promoting peace and support and also to promote the growth and stability in the economy. Thus it has strong commitments to protect the rights of human and also to protect the discrimination of law. (Straw, 2014) Labor and free movement of people Free movement of people and capital has developed the economy more flexible. It also enables British people to reside and work in Europe. It also has enabled people to easily travel and make the tourism easier and cheaper. (Economicshelp.org, 2007) European Union law is a body of court judgments and it is strongly respected in terms of issues and other economic and political system that involves human rights. It progressively commits to harmonize the laws and to deal with the policies to reduce the issues. (Archik, 2014) Europeans are considered as both the local as well as global authorities that have major impacts on the living conditions. The development of Europe has primary importance and it is strongly controversial. Multilateralism is a novel concept and it is a strong support among sovereign states. Today it has increased the diversification and represents the platform for support and cooperation. (Lagenhove Maes, 2012) The process of economic integration leads to the development of economic union and it is a common policy that deals with strong harmony and different rules and policies among member states. It brings some issues and involves economic integration. Thus it also has static and dynamic effects with the best use of available resources. This results to the formation of union that increases the competition as well and also there is a use of new opportunities and the strong advantage of integration is efficient that generates fast economic growth and also helps with opportunities to increase the level of production and also to increase the scale of economy. European Union is one of the most powerful economic factors that are also known as regional integration. (Djuric, 2015) EU has experienced the gradual movement of power of decision making from the institution to the governments of member states. EU capitals have strong European commission that is required for unions achievements. There are initiatives that focus on stronger economic growth and EU comprises rules, policies and practices. (Debaere, 2012) Strategy of EU for social cause The union has always believed in adopting the best policies through which the inclusive growth methods can be adopted and implemented by the company. This is also related to adopting and implementing the best employment process that will cater the needs of the mass population of the people aged among 20-64. The prime objective has been to include the steps through which the poverty level amongst the members can be reduced drastically by the members. In order to reduce the impact of unemployment an attempt has been made to introduce new skills and job agenda, through which the required changes can be introduced by the management. For this the EU has introduced effective social investment packages, through which the needs could be catered by the members in the best possible manner. Such plans have been prepared so as to reach out to maximum number of members at the same time. Also the support system has been developed so as to ensure that the right offers for support system is develope d and communicated with the members. Through the package system the management of the EU introduce the best guidances to the member states that will help in catering the needs that is required for making changes in the social investments. Such things are meant to provide better services and opportunities to the member states (Bartels, 2014). Some of the steps that has been taken by the authorities for improving the welfare position of the members include 1.Introducing an effective employment package system, for improving the quality of the services that are expected to be rendered to the member states.Introduce the best system for making changes in the white paper on pensions for the people. 2.It also includes introducing the strategy for adequate changes that will ensure safe pension scheme for the people. 3. Analyse the relevance of the youth employment package scheme through which the changes can be implemented for introducing more jobs for the people. The programs are designed and implemented for youths who are qualified but dont have better jobs (Richardson, 2012). Flagship issues There are different types of programs that has been introduced for the people or the members of the state. The changes have been implemented in order to provide the best possible services through which the improved quality changes can be introduced for the people. One of the greatest tasks that have been adopted by the company includes adopting and implementing steps to fight against the poverty, which also includes social exclusion of certain factors. There are different types of flagships and this is considered to be one of the most important factors that could directly impact the plan that has been decided to be implemented by the authorities. The major task that was planned to be introduced by the authorities includes adopting and implementing the steps through which around 20 million and more people could be lifted above the poverty line. This was meant to improve the social position of the people and provide better opportunities to the member state to reside. The plan was launc hed in the year 2010 and was expected to continue till 2020 (Krajewski, 2010). In order to accomplish the below mentioned task, the authorities had concentrated on five different areas that required the action plan. Some of the changes were introduced for the below mentioned factors 1. Draft policies for delivering the expected actions for the whole policy strategies. This also included analysing the labour market and implementing the minimum support system, through which the required changes can be introduced by the management. Through this program an effort was made to introduce better educational system that would benefit the people and providing the required housing facilities for the people. In this process, the access to the banking requirements were also planned and implemented din the right manner (Tilikainen, 2011). 2. In the second step, the funds that were allocated for supporting the social exclusion cause was expected to be used in the best possible manner. For this, the management had proposed to use around 20 per cent of the total funds for eradicating the poverty level that existed in the system. It was noted that the problem associated with the poverty was quite serious and had to be handled in the right manner (Podgorny, 2013). 3. Analysing the best method through which the problem related to the social policy system can be improved and sorted out in the right manner. In this process, the plans has been analysed and the same needs to be evaluated in the described manner. This will help in improving the plan that has been proposed to be implemented by the authorities. In this case, the different strategies that will be adopted for implementing the changes in the process will have to be analysed. This is important as the implementation process will be done in an effective manner. 4. Developing partnership is one of the most important tasks as this will help in increasing the quality of working for the authorities. In this process, the challenges are analysed and the corrective steps are taken to ensure that the right details and services are provided to the people. This is quite an important task, as it will help in increasing the quality of services that has been proposed to be rendered to the people. In this case, the participation of the people has to be analyse das it will help in accomplishing the task in the best possible manner. Such factors are considered to be necessary for introducing the social policy reforms that are necessary for eradicating the poverty level that exists in the member states. 5.In the late stage the best policy for implementing changes in the coordination policy is adopted and implemented by the authorities. This is done with an intention of making the corrective changes that will be considered to be useful for introducing the required changes that are necessary for introducing the changes that are essential for the member states. For this, the coordination method is adopted and implemented in the right manner, and the whole purpose is to protect the social cause and implement changes for the social inclusion method. Evaluation of the process The process that has been proposed to be introduced by the authorities has been analysed and the corrective steps are taken for making the changes. Important key actions are planned and communicated with the members and the same is done with an intention of making the changes that will be useful in improving the program that has been introduced by the EU. The targets has been set forth by the EU has been effectively communicated with the members. This also includes informing the targets that has been defined by the management. The policies and the changes that are intended to be introduced by the management have been evaluated. This is done with an intention of improving the quality of services that has been planned to be implemented by the authorities. It includes analysing the individual efforts and the growth prospects that has been planned to be introduced by the authorities. In this case, the individual efforts introduced for the people will be evaluated on the basis of the bene fits that will be derived by the members. In this case the actions that have been proposed to be introduced by the members will be evaluated and the corrective actions will be taken by the management on a timely manner. This is done with an intention of reducing the poverty level that impacts the quality of living amongst the people. Apart from this, the members are provided with effective training that will help in handling the challenges that exists with the process of implementing the methods. The scoreboards are decided and the same is communicated with the intention of improving the quality of interaction with the members and others who are involved in the process of discussion and the steps that needs to be followed for implementing the changes that are required for introducing social reform programs (Wolcock, 2005). Decision making process At the time of introducing the changes that are necessary for decision making, it is necessary to analyse the challenges and gather the reviews from the members. In this process, the councils have to be interacted and the issues with the process of introducing the changes have to be analysed. Changes are made after analysing the steps that needs to be followed for implementing the required changes (Wolcock, 2010). Conclusion There are different types of reform programs that have been introduced by the management of the EU commission board. In this case, the issues have to be analysed so that the best method can be selected by the authorities. The process includes different steps and the same needs to be followed in the right manner. This will improve the plan that has been prepared for making the changes that is required for providing better services to the people. References Aaronson S, 2011. Chapter 21: Human Rights, In: Preferential trade agrement policies for development: a handbok, eds. Chaufour, Jean- Piere; Maur, Jean-Christophe, Washington, D.C.: World Bank, 2011. Archik, K. 2014. The European Union: Questions and answers. Congressional research service Bartels L, 2014. The European Parliament's role in relation to Human Rights in trade and investment agrements, study for European Parliament, 2014 Barnes M, 2011. The Role of the Commission of the European Union: Creating External Coherence from Internal Diversity. In Rdiger K. Wurzel and James Conelly (eds.), The European Union as a Leader in International Climate Change Politics. London: Routledge, pp. 41-57. Beck, Silke, Christian Kuhlicke and Christoph Grg. 2009. Climate Policy Integration, Coherence, and Governance in Germany. PEER Climate Change Initiative Project 2: Climate Policy Integration, Coherence and Governance. Leipzig: Helmholtz Zentrum fr Umweltforschung. Bradley Wilfried A, and Ewing D, 2003. Constitutional and Administrative Law. 13th edition. Harlow: Pearson Education Limited. Bowen, Alex, and Rydge J, 2011. Climate change policy in the United Kingdom. Policy paper. Centre for Climate Change Economics and Policy. Grantham Research Institute on Climate Change and the Environment. Client Earth. 2009. The UK Climate Change Act 2008 Lessons for national climate laws. An independent review by ClientEarth. Online available: https://www.clientearth.org/climate-energy/climate-energy-publications/ukclimate-act-337. Cowell R, Geraint E, Fionnguala B, Strachan P, and Toke D, 2013. Promoting Renewable Energy in the UK. What Difference has Devolution Made? Cardiff: University Cardiff. Debaire, P. 2012. The European Union in the G20: What role for small states. Academia.edu. Djuric, M. 2015. Role of European Union in world integration processes: Diplomacy and foreign affairs. DECC. 2011. Feed-in tariffs scheme: consultation on Comprehensive Review Phase 1 tariffs for solar PV. Online available: https://www.gov.uk/government/consultations/feed-in-tariffs-first-phase-of-a-comprehensivereview. EEA 2012b. Gap between average non ETS 20082011 emissions and Kyoto targets without the use of carbon sinks and flexible mechanisms. Online available: https://www.eea.europa.eu/data-and-maps/figures/gapbetween-average-nonets-200820132011. Fernandez A, 2002. Synergies Between the Emissions Trading Proposal and the IPPC Directive. ELNI Review 1/2013: 13-17. Grlach B, 2013. What constitutes an optimal climate policy mix? CECILIA2050 Deliverable 1.1: Defining the concept of optimality, including political and legal framework conditions. February 2013. Berlin: Ecologic Institute. Goudswaard, A., Houtman, I.L.D., Jettinghof, K., Kuipers, B., Osinga, D.S.C., Ruijs, P.A.J., Savenije, W.M. and Schoenmaker, N., Road transport working time directive: Self-employed and night time provisions, Hoofddorp, TNO Quality of Life, 2006. Gupta J and Ringius L, 2001. The EUs Climate Leadership: Reconciling Ambition and Reality. Multilateral Environmental Agreements: Politics, Law and Economics 1: 281-299. Krajewski M, 2010. The Reform of the Common Commercial Policy, In: European Union Law after the Treaty of Lisbon. Forthcoming. Lagenhove, V. Maes, L. 2012. The role of the EU in peace and security: United nations university. Lewis A, 2008. Why have economists done so well in the British civil service? Oxonomics 3: 26-29. Paolo A, 2005. Opportunism and competition in the non-fossil fuel obligation. Tyndall Centre for Climate Change Research. Working Paper 78. Paulet, M. 2014. How the European Union works and how to influence its policies: The APC European internet rights project. Podgorny M,2013. The Negotiation and Adoption of Preferential Trade Agrements in the Lisbon Era: A View from the European Parliament, In: EU Preferential Trade Agrements: Commerce, Foreign Policy, and Development Aspects, ed. Kleiman, David, EUI, Florence, Italy, 2013. Richardson L, 2012. The Post-Lisbon Role of the European Parliament in the EUs Common Commercial Policy: Implications for Bilateral Trade Negotiations, Colege of Europe, Department of EU International Relations and Diplomacy Studies, Diplomacy Paper 5/2012. Sandberg, J (2001). Understanding competence at work. Harvard Business Review 79, 3, 24 - 28. Straw, W. 2014. Heading for the margins: Why is Britain running away from Europe. Tilikainen T, 2011. The Empowered European Parliament, FIA Briefing Paper 91, November 201. Wolcock S, 2005. European Union trade policy: domestic instiutions and systemic, factors, In: The politcs of international trade in the twenty-first, century: actors, isues and regional dynamics. International political economy series, eds. Kely, D. and Grant, W., Palgrave, Basingstoke, UK, 2005, p. 234-252. Ward, R, et al (revised edition 2009) Personal development planning and employability, Learning and Employability Series 2, York: The Higher Education Academy Ward, R and Watts A.G. (2009). Personal Development Planning and Employability. In Personal Development Planning and Employability. The Higher Education Academy Learning and Employability Series. Pp 4-16. Westwood, J. Implementing Personal and Professional Development Planning at Napier University. Powerpoint presentation accessed December 2009 and available online at https://www.slidefinder.net/i/implementing_personal_professional_development_planning/9307116 Wolcock S, 2010. The Treaty of Lisbon and the European Union as an actor in international trade, ECIPE Working Paper No. 01/2010.