Financial Resources Management Essay Example | Topics and Well Written Essays - 2000 words

Financial Resources Management - Essay Example It is the relations between the Dollars or Euros that an entrepreneur has borrowed and Dollars or Euros invested in the business. The more the investment by the owners the more they attract the financing. When the equity to debt ratio of the firm is high then debt financing should be taken. If the proportion of the debt to equity ratio of the firm is high then it is advised that the owners should increase their equity investment, that way they cannot jeopardize firm's survival. Limited equity financing is used by most of the small or growth stage businesses. Whereas in debt financing, funds pour in from different quarters like from friends, relatives, etc. Venture capitalists are the most common source of equity funding. Venture capitalists may be institutional risk takers, financial institutions, wealthy persons, etc. and most of them specialize in industries. Venture capitalists are risk takers and show interest only in three to five year old companies that result in more than average profits. These venture capitalists are called as investment gurus whose interest lies in those companies that have major regional and national concerns. Commercial finance companies, financial institutions, banks, savings and loans, Lloyds Bank small business, etc. are some of the sources for debt financing. Because of their positive impact on the whole economy local and state government encourage the growth of the small companies. In debt financing additional funds comes from friends, family, relatives, and industry colleagues, etc when capital investment is smaller. Generally banks formed as a major source for loans for the establishment of small businesses. Banks don't offer long term loans to small firms instead they grant short term loans for machinery and equipment, they also offer demand loans to small firms that reduces the risk of leveraging the funds available. Applying for a loan Loan application should be well written, so that the reader could get a clear picture of what your plans are. The presentation should be of the best quality in the initial loan proposal and application. Only industry specific details should be included so that reader can easily understand. Business description: a. Organization type. b. Information date. c. Location. d. Product or service. e. Firm's previous commitments (if any). f. Future plans. g. Competition. h. Customers. i. Suppliers. Management experience Resume of the owner and important employees should be included. Personal Financial Statements Care should be taken that the financial statements are not older than 90 days and financial statements of all principal owners and guarantors should be included. A copy of last year's income tax return should also be included. Loan Repayment The method of repayment of loan should be included and supporting documents of cash flow schedules, budgets and

Environmental Science DB3 Essay Example | Topics and Well Written Essays - 250 words

Environmental Science DB3 - Essay Example It is also important to acknowledge the fact that energy cuts across all areas of our lives but very perishable. Therefore, there is need to use energy responsibly or reduce usage all together. According to Natural Resources Defense Council, there are several ways on how to reduce energy used at homes which include taking precautions like unplugging some of the appliances that are not commonly used in the house. For example, presence of an extra refrigerator requires that you unplug it from the main source of energy to save power. Unplugging electronics chargers when not in use or using power strips to switch off televisions and radios. It is also advisable to set your computers to sleep as well as hibernating mode just in case there not switched off (Consumer Reports 2006). Alternately, an individual can incorporate renewable sources such solar energy to heat bath water instead of using un-renewable energy. However, implementing these changes is accompanied by several challenges like cost and unavailability of required resources. In addition, some individuals live in remote areas, and due to lack of information, they may not have the knowledge or the potential to tap reso urces such as solar and wind energy. One of the most consumed forms of energy in many homes in USA is fuel which has been known to contributor to green house gas emission and noxious gases into the atmosphere (US Department of Energy, 2013). In attempts to avoid the use of fuel, electrical and hydrogen-powered vehicles have proven to be the best alternative. This is because they can cover many miles, are them cost effective, and do not emit noxious gases. Therefore, although such vehicles are very expensive, it is the best method to reduce fuel consumption. In conclusion it is clear that we can only reduce use of energy by first identify what, how energy is used in most homes and then utilizing the options that