Unit 3: Financial Planning & Monitoring
Sources of finance
Setting and monitoring budgets
CashFlow forecasting
Business Plans
Cost and revenues
Resource Management
Legal Forms in business
Partnerships
Partnerships don't benefit from limited liability.
Partnerships dissolve on death of a partner or resignation
or bankruptcy
To avoid this make deed of partnership
This covers arrangements for sharing profits, liabilites in case of debt, continuation after death of partner and etc.
Partners who choose not to take part in management are
called sleeping partners
Every partner able to take part in business actions
Group betwen 2 to 20 people who contribute to capital
& expertise in enterprise.
Sole Trader
Soletraders may run the business on their own but
this doesn't mean that they can't hire people for work
Can become limited but takes a long time so most sole traders are unlimited from liabillity.
has full responsibility for financial control of business, meeting capital requirements.
A form of business organisation which is run by an individual who owns and runs the business.
Limited Liability
Shareholders are not responsible for paying debts
made by the business
If hte business fails they lose the money that they had put into the business.
Limited liability means that the owners of a business (shareholders) risk only what they have invested into the business.
Profit and breakeven
