ARRANGING

FINANCES

But first some quick

revision.

TASK A: Identify the Business

Structure
1) I require that my owners put in capital, usually of equal
amounts. People like me because the responsibilities are
shared among the owners but so are my profits.

Identify the Business

Structure
1) I have the term Pty Ltd after my business name. I am
favoured due to my limited liability and more people are
able to invest however I am quite expensive to establish
with numerous legal restrictions.

Identify the Business

Structure
1) I have no restriction on the maximum number of owners
but they all must buy shares in me. All of my profit is
better known as dividends and I simply issue more shares
to raise extra capital. I am not favoured as not everyone
has a say in the day-to-day running of the business.

Identify the Business

Structure
1) Many people choose me as a business structure because I
do not require a large amount of capital and am therefore
inexpensive to establish. One of my main disadvantages
is that I have unlimited liability.

TASK B: Unscramble and Match

WORD LIST
itpacla

eerosdtarl

gestexockna
ch

aitilbiyl

rnraepihpst

ivdddeni

onepaxisn

nnvtegoerm

riepcmotavn
yap

ehrsordlhea

1)Money invested into a business:

2)A body that makes laws by which businesses must
abide:
3)Two or 20 owners run by the business:
4)When a business requires extra money to grow:
5)Responsibility for all financial affairs, including debt:
6)A business where people are privately invited to buy
shares:
7)One person owns and runs the business:
8)Person who owns shares in a business:
9)A place where public shares are bought and sold:

TASK C: Identify the Business types

BUSINESS NAMES
A) Becks Pty Ltd

E) Tom Wilkonsons
Plumbing

B) M&M
Communications

F) CGM Ltd

C) Tip Top Pty Ltd

G) Tyler and Kelly

lawyers

D) Monsters Inc

H) Casio G-shock

You now require the arranging

Finances worksheet

Introduction
All businesses require some form of financing. The
best way to look at it is two main choices;

Sources of Finance

EQUITY

DEBT

EQUITY
Equity is another way of
saying money you have
earned such as personal
savings.
This generally is acquired
from either;
Steady income (salary or wage)
Profit (investments)
Gifts from families or friends

What are some of the

advantages
and disadvantages of equity?

Sources of
Finance
EQUIT
Y

DEBT
Debt is the state of owing a
lender a certain amount of
funds. Businesses may need
to do this to finance their
operations on an ongoing
basis.
This generally is acquired
from either;
Short or long term business loan
Overdraught

What are some of the

advantages

Sources of
Finance

DEB
T

In conclusion
In general, finding and securing finance for your
business takes careful research and good
negotiating skills.