Task 1
AC1.1 Review sources of funding (8 Sources) available to business and services industries
AC1.2 Evaluate the contribution made by a range of methods of generating income within a given business and services operation
- A review of the sources of funding (8 sources) available to business and service industries (AC1.1)
- An evaluation of the contribution made by various methods of generating income for a large chain restaurant. (AC1.2)
You are in a small business as a sole trader. You wish to purchase some new machinery costing £50,000. Capital expenditure may be financed by a variety of external sources (as well as internal). Capital investment appraisal is an important decision-making function. The selection of a particular project and the most appropriate means of financing it are difficult decisions to make. As a senior manager you will receive some expert advice on what you can do. Ultimately, the final decision will be one for you. You need to choose one source for this machinery funding with reasons. Also:
- Review the sources of funding (8 SOURCES) available to business and service industries (1.1)
- Evaluate the contribution made by various methods of generating income for a large chain of restaurants. (1.2)