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Financial Institutions in the economy
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Domestic and International Sources of Financing
There are several private and public sectors that offer financial assistance for global business enterprise. Denim Trends will enlist financial professionals that understand global business and Denim Trends operations. Hiring financial professionals with a good understanding and knowledge of domestic and international financing will assist Denim Trends in dealing with organizational risk. Denim Trends will design a presentation and convene with potential investors to demonstrate how Denim Trends can improve Puerto Rico’s economy. It is imperative that Denim Trends develop a proposal that has an elevated protection against danger.
Denim Trends essential and reliable source of domestic financing will be self-financing. According to Business Dictionary (2011), self-financing is defined as a “firm or project that generated its growth capital from its own income” (self-financing, 2011). Denim Trends can reinvest the organizations profit as retained earnings. By Denim Trends using their retained earnings is a smart resource, because the investment can be carried out without involving shareholders or stakeholders.
Bank lending is another source of domestic financing Denim Trends will select. Denim Trends will rely on short term, medium term and long term financing. Short term financing will allow Denim Trends to pay for office supplies, utilities and payroll. With short term financing Denim Trends can arrange for a short term line of credit with our local bank. Getting the line of credit will assist Denim Trends with managing organizations operations. Examples of short term sources of financing are: trade credit and commercial banks. Medium term financing will let Denim Trends acquire ...
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...contributes assets and collect share of the profits. The limited partner is barred from management and is excused from personal liability.
Works Cited
Doral Bank. (2011). Doral. Retrieved from http://www.doralbank.com
Government Of Puerto Rico. (2011). Government Development Bank for Puerto Rico. Retrieved
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Governement Development Bank For Puerto Rico. (2011). Welcome Message. Retrieved from
http://www.gdb-pur.com/about-gdb/welcome.html
Self-financing. (2011). In Business Dictionary. Retrieved from
http://www.businessdictionary.com/definition/self-financing.html
Vaughan, J. (2011). What is a Joint Venture. The University of Iowa Center for International
Finance and Development. Retrieved from
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Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
The global fashion and apparel industry is a giant with annual turnover of approx. $1.7 trillion and provides employment to approx. 75 million people. With globalization and increasing competition amongst manufacturers, coupled with lower production rates in the developing countries, buying clothes has become way inexpensive than before. Add to it the fiercely growing internet penetration and fast catching up ecommerce industry, clothes are more or
"House of Denim Towards a Brighter Blue; Promoting Sustainable Denim from Crop to Shop." Apparel Online. (February 6, 2014 ): 1351 words. LexisNexis Academic. Web. Date Accessed: 2014/04/10.
Yan, A. and Luo, Y. (2001), International Joint Ventures: Theory and Practice. (New York and London: M.E. Sharpe, Inc.).
The case study is about an interview, conducted to four venture capitalists from four of the most prominent VC Silicon Valley firms, Kleiner Perkins Caufield & Byers (KPCB), Menlo Ventures, Trinity Ventures and Alta Partners. These firms invest both in seed as well as in later-stage companies, which operate mostly in the information technology sector. However, each VC has developed different sector portfolio depending on the expertise of the venture capitalists, the partner network and other factors. Professor Mike Roberts and Lauren Barley a senior research associate, both from Harvard Business School, have made a series of seven questions to their interviewees to understand how they evaluate potential venture opportunities and what they look at in order to decide if they will fund them and in which way. The questions were dealing with how VC’s evaluate potential venture opportunities, how they conduct due diligence, what process id followed for the decision making, what financial analyses is performed, the role of risk in the evaluation and how they think of potential exit routes. These questions were asked individually and revealed several similarities as well as differences in the strategy and the criteria that are used for the evaluation.
The Body Shop International case is an interesting case study into the miscommunication of owners and stockholder interests with regard to financial conditions. Anita Roddick, the founder of The Body Shop had no financial experience and thought that all she needed to do was expand her business and the financing would take shape as she developed her business. While Anita’s product concept of a natural skin-care line was good; her lack of experience in financial matters took its toll on her business.
Adelman, P. J., & Marks, A. M. (2010). Entrepreneurial finance. (5 ed.). Bedford, Texas: Prentice Hall.
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
The article provides examples of companies that have faced the crisis. For instance, the premium position captivity reason was among the main factors causing Levi Strauss to lose its share of market. ...
Borrow long-term loans from local banks – These are a common way of financing major purchases of an organization. An advantage is that it is directly linked to an organizations operating capacity. Another advantage of long-term loans from local banks is that it enables a firm engage in large projects. Although its disadvantage is that the banks charge high interest rates.
Jeans is not just apparel, but has become a must-have item. Today, a lot of denim-based products are not just apparel, but also other things such as handbags, carpet, and even a sofa. (elaborate more).
Before 1980 the only way to find the investment for any startups was banks and in 1980's there were investors who were interested in technology business. In this 20th century, small and mid-sized enterprises (SMEs) have a low income and are not easy to get capital or financing from any financial institutions or bankers, but startups have an option to find their investments through a strategy called Crowdfunding, a venture to raise money from various people. This review infers the content on influence of crowdfunding in small and mid-sized enterprises (SMEs). This review emphasis on how crowdfunding is growing in SMEs, what are advantages and disadvantages of crowdfunding and a case study on how a company from Indonesia raised their money using crowdfunding.
“…separate legal entity possessed of separate legal rights and liabilities so that the rights of one company in a group cannot be exercised by another company in that group …”
waste on an idea. There is a quite a gap in the investors circle vs. the emerging SMES. The skepticism lies
As we start our business, and even our business moves along, we will constantly need to concern ourselves with financing our business. Financing concerns begin with the start-up costs and then continue with business expansion and new product development. When we look for outside financing, one of the first things the investor will want to see is our business plan. Private investor, banks or any other lending institution will want to see how our plan on running our business, what our expense and revenue projections are whether or not our plans for the future are attainable with the business we have created. All of this can be answered by a well-written and thorough business plan.