Financial Resources are life blood for a business, hence the business concerns raising the required finance from different sources. It may influence and impact the financial statements. While selecting a particular source of finance various implications have to be analyzed which helps the company in the decision making process. Capital is not only required to set up a business but a business may require additional funds or capital to carry on their day to day activities. To start up a business financing is the basic requirement in order to ramp up its profitability. There are different sources of financing available during the startup of business strategy. But first it has to be considered how much fund is required and when it is needed. The funds required by an organization will depend upon the type and size of the organization. Short term capital is required where the organization is in a need of working capital and long term capital is required for the expansion of the business. Different sources of finance are available to small business or a big company. With each sources of finance listed will assess the implications at the cost of the business. At the initial phase all companies are in a need of short term finance to cover their day to day running cost. Short term finance also provides the initial working capital to the company. The type of finance chosen depends upon the nature and the size of business. In order to choose the type of funding option an appropriate source of finance is very important. The sources of finance are basically categorized under two heads namely internal source and external source. Read the above paragraphs carefully and answer the following questions.

Questions:

1. Evaluate appropriate sources of finance that will increase Shareholders vale in a business project

2. Evaluate the methods of raising long term and short term funds and assess the implications of the different sources.

3. Describe the different sources of internal and external finance available to start and expand a Limited Liability Company