Write an essay explaining all the possible sources of funds for a business, with their advantages and disadvantages, explaining which you would choose for your new business and why. Follow the instructions already given for font size and style, layout etc. This can be included in your coursework portfolio.
1. The Bertolinis set up a Pizza delivery business. The capital put in at the beginning of the year was £5,000. Over the year they sold 10,000 boxes at £15 per box. The cost of making each box was £10. Other expenses were £6,000 wages, £2,000 power and £2,000 general expenses.
The building cost £20,000 and machinery was bought for £5,000. As shareholders the Bertolini’s expect their dividend; there are ten of them and they are owed £500 each to be paid by the end of the year. The accounts are drawn up just before the end of December and, at that point, the company is owed £5,000 for pizzas sold in that month and owes suppliers £5,000, again for goods bought in that month. Otherwise all payments are prompt and even. At the time of drawing up the accounts the company has a stock worth £5,000.
Your task
Use this information to draw up: