Questions and Answers

this is for the raising finance section and the locating a business section

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Raising finance questions and locating a business
What is meant by Ordinary share capital? OSC is money given to a company by shareholders in return for a share certificate. The
shareholder has a percentage of the business and is entitled to a share of profits.
What is meant by venture capital? VC is finance provide by small or medium sized firms that seek to grow however it is very risky, it involves
money ranging from £50,000 to £100,000. It can be in the form of a package loan or share capital or even a mixture of the two.
What is meant by personal sources of finance? This is money which the owners gain form their own savings or personal wealth.
What is the difference between a bank loan and a bank overdraft? A bank loan is where a sum of money is provided to a company for a
specific purpose whereas a bank overdraft is where the bank allows you to go over the amount of money in an account with the bank for a an
agreed overdraft limit for a stated period of time.
Why is teleworking so popular with small start-ups? Teleworking is so popular with small start-ups is that they are cheap, flexible and a
company can gain from easier growth.
Explain one reason why a newsagent would want to locate at the least-cost site and one reason why it might not want to locate
at the least-cost site. One reason why a newsagent would want to locate at the least-cost site is to have low overheads and therefore will
have less labour and rent to pay however, one reason why they may not is that a least-cost site could restrict them from their customers and
this affects their profit.
Analyse 2 ways in which infrastructure might influence the location of a small textile manufacturer. Infrastructure is the network of
utilities in a certain area. E.g. wi-fi, transport links etc. As it is a textile company and customers will be buying in bulk you need to be aware if

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Another reason
would be is it easy to receive all of the deliveries that will be coming to the outlet.…read more


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