Managing Financial Resources and Decisions Assignment - 5

Managing Financial Resources and Decisions - Assignment Example Business entities can get finances from the following sources1)Â  A business can get its funding from the owner of the business where he or she gives out either funds or property as a starting capital to the business.2)Â  Donations and grants: These are funds that are given to the business entity by the friends and well-wisher to assist the business in meeting its financial obligations3)Â  The business can also borrow loans from the bank to fund the operations of the business.4)Â  Sponsored Agreements: some of the research that are conducted in some of the organization are performed using funds from sponsoring agencies that support the research and training and even services through various agreements.5)Â  The business can also get its funding from the family friends.6)Â  Ploughing back of the business profits can also be another source of fund that the business can use to expand its activities. This means that the profits that are realized by the business are re- invested in t he business to expand the business.7)Â  Other sources of finance for the business can also be gifts from friendsImplication of finances to businessesIt is very possible to manage income effectively and efficiently through financial planning. Good management of the incomes will help you and the business to know and understand how much money you will need for tax payments and other monthly expenses and even personal savings.Good financial planning can increase cash flows through careful monitoring the spending patterns and expenses.