Creating, Financing, and Marketing a Business Research Paper

Creating, Financing, and Marketing a Business - Research Paper Example With such a well diversified blend of people coming in to operate the business, a lot of costs can be saved in hiring other people to do these kinds of technical work for them. Moreover, in the case a loss occurs in a partnership, not all of it will be taken by a single person like in the case of sole proprietorship. Here, each partner will be liable to the maximum amount of their investments (or if agreed otherwise) they have made. Partnership also have a lot of cons. In case of partnership, often time the agreement are framed in such a way that if any one partner leaves, the entire partnership / business needs to be would up. This is one of the major problems in partnership as a mode of ownership. Yet another very important con is that there may be differences in views of partners as how they want to carry out the business or resolve a particular issue. In such case, usually voting is carried out to determine a way out. This would mean there would be several partners who would have to agree to something against their wishes. Funding Options For Small Business There are a lot of possible ways which small businesses can use to fund their operations. The options include debt financing, grants, equity financing, loans from friends and family, business angels or angel investors as they are better known, venture capitalists and strategic investors. A few of these sources re discussed in more detail below. Almost all small businesses finance their operations via loans taken from financial institutions. These loans are often easy to take come with a repayment schedule an interest rate that is decided upon at the time of cracking the deal. The plus side of debt financing is you don't have for equity financing, thereby you'll solve equity issue expenses. Secondly, getting a debt is pretty much an easy option as compared to floating a company's shares on the stock market. Government grants can also be used to fund the operations of small businesses. These grants are usu ally offered to businesses in the research and development side and those working in the technology sector (McCaffrey, 1992). Its benefits include the fact that this is literally free money that doesn't need to pay back and investors love the boost that such grants provide. On the negative side, the use of grant money is often dictated by the government and it cannot be used for anything else. How Managerial Accounting Can Help Managers With Product Costing, Incremental Analysis And Budgeting Managerial or cost accounting deals with costing techniques. It is generally concerned with providing price sensitive information to decision making managers, as they're the people who are responsible for product costing and control operations. Managerial accounting can help managers with to determine cost units and allocate them to different cost centers. Once all these cost units have been allocated to different cost centers, then the total cost per unit can be determined and hence product co sting becomes easier. Managers generally make decision by selecting between different alternatives available to them. Since a lot of information is available when deciding product costs, decision making becomes a much easier process when they only examine the amounts that differ between different decisions and make a decision accordingly. In such cases differences only occur between relevant costs, and they're the ones that need to be considered in incremental analysis since non