Managing Financial Resources and Decisions - Essay Example

The author of the paper states that when the entrepreneur wanted to start a new software company, so he had to think about a different source of financing. It was found that he could not get more than 50% of finance from the bank. Then the promoter had to search for a different kind of private investor. Among these, the venture capitalists and the angel investors are found as the best persons to approach. After considering all the factors the promoter has chosen to approach an angel investor, which is easily available in the United Kingdom.

He also had to choose the source of short term financing. When the business would be successful then the promoter has planned to make the company public which is the best option available for financing. Along with this he would like to get finance from the banks or by issuing bonds. From the part B of the study, the purpose of the financial statements was understood by the researcher. It was also clear that there are different formats of financial statements for a different type of companies (sole trader, limited company and partnership).