SEction IV question 27/28 (1 Viewer)

[tomato_sauce217]

Hey....
lets have a poll of who choose which question to do.. in our school it was mostly like question 28 .. and i did question 28 as well....
If any one did question 28... what u write for the second part of the question??
evaluate the effectiveness of sou rces of funds to finance global expansion???

 

[moogle180]

for the second part of Q28 i wrote about how a business expanding gobally can get funds from international sources like banks and also from their own govt. I used examples of where business have been sucessfull by using these funds. I don't know if i'm right though.

 

[Conspirocy]

my answer

for the second part of the question - sources of funds for global expansion.

well umm, they have to make section 3 and section 4 ask each of the topics

and section 3 was on marketing, human resources and managing change

so that leaves finacne and global business in question 28

we all know investment strategies for entering overseas is global business

so for sources of finance i wrote

internal - owners equity intial, retained profits
external - short term borrowins: debentures, overdrafts - long term borrowings - mortages, loans, leasing
other - government grants, then the whole overseas borrowing thing - like currency and interest rate changes, and finally the whole floating on the stock exchange thing.

oh by the way you didnt need to stress about the case study for the financial section casue apparently the syllabus doesnt make u do one on finance - but it wouldt hurt if u threw some stuff in. but yeah stay away from question 27 that was scary.

 

[ChelleBelle]

yeh my sources of finance included gvt grants, issuing prospectus for shares, investing, overseas borrwing in international markets and derivatives... i figured it only wanted international sources not domestic

 

[cro_angel]

well i wrote about the methods of expansion.. shoved 5 case studies in there for each method woo
then i wrote about sources of funds.. debt (when talking about overseas borrowing i mentioned interest rates/currency fluctuations too), equity and other.. then saying the advantages and disadvantages of each

 

[= Jennifer =]

i did methods of expansion, sources of funds, costs and benefits of them

 

[tomato_sauce217]

yeah.. i looked at question 27 and i was like... FINANCIAL pla nnning??

didn't even look at it.. have a beta go at question 28 cuz i had a case study on

westfield which had methods of expasion... for sources of funds i wrote about

how they could get money from retained profit and owner's Equity... but for

external sources.. i didn't really mention much except banks and investors just

busllshitted.. i donno...

yeah... hopefully i did ok..

i was predicting that i could get about a mark of 80.. i heard that business scales

u down is that true but?

 

[Jesykah]

I think it was scaled down in previous years .... but! ....
I wouldnt worry too much about scaling .... it changes every year depending on the standard and range of marks.

 

[Tabris]

When i started i just noticed in the area between the bold lines

"You will be assessed on...." and it said the use of "case study" i think some ppl disregarded that part, because any essay on global business must be referred to the case study, otherwise i think, u wont get as high

 

[Soulja]

me 2

well i wrote about the methods of expansion.. shoved 5 case studies in there for each method woo
then i wrote about sources of funds.. debt (when talking about overseas borrowing i mentioned interest rates/currency fluctuations too), equity and other.. then saying the advantages and disadvantages of each

Thats exactly what youre meant to do.... source of funds means DEBT vs EQUITY. ur probably gonna get full marks coz everyone else would of put all the internal and external types of funding and wasted their time

 

[Conspirocy]

Thats exactly what youre meant to do.... source of funds means DEBT vs EQUITY. ur probably gonna get full marks coz everyone else would of put all the internal and external types of funding and wasted their time

um maybe but when u look at the syllabus sources of funds is defined as

• sources of funds
– internal — owners’ equity, retained profits
– external — short-term borrowing, (overdraft, bank bills), long-term borrowing (mortgage, debentures) leasing, factoring, venture capital, grants

so hmmmmmmm i dunno like im sure what ur saying is absolutely correct and wont get marked down. But, i just thought that thats how u should do it. and i dont think u get marked down for answering it properly last time i checked.

 

[Stilla]

I know people who only referred to the Eurocurrency market, international bonds market ect as sources of finance because they assumed the whole thing was on global business, when it was obviously covering FP&M as well, poor bastards.

 

[Emily.]

yeh i did 28 like most ppl....hope that dont work against us!
anyway, i did my business (the business plan i wrote in year 11) and explained all methods of expansion then said which would be best for my business and also the sources of finance and analysed which would be the best. oh shit.....shoulda talked about the buinesses solvency situation with regard to debt or equity finance.........oh well....whats done is done!

 

[nova]

I did 28 aswell. Pretty much spoke about all the different internal and external sources of funds, discussed pro's and cons (eg. debt finance is tax deductible, leasing is tax deductible and frees up WC etc...) and wrote a shitload on my case study (harvey norman - from my global bus assignment). It was a good question for my case study aswell, as HN has recently expanded into many o/s markets and I covered lots of that in my bus report. I'm hoping for 17-19

 

[Acid]

yeh my sources of finance included gvt grants, issuing prospectus for shares, investing, overseas borrwing in international markets and derivatives... i figured it only wanted international sources not domestic

I thought the other way round. If you think about it logically - if you're a relatively small business looking to expand into international marks, as if you'd do so by borrowing from overseas. You'd go to your local bank or take on a new partner, etc...

 

[nova]

I thought the other way round. If you think about it logically - if you're a relatively small business looking to expand into international marks, as if you'd do so by borrowing from overseas. You'd go to your local bank or take on a new partner, etc...

But a small business would most likely be exporting, not FDI. Pretty much as long as you covered most of the options, you should be fine. But since the question was centred on global business, you should have discuss o/s loans, hedging, etc...

 

[Acid]

Q27 you'd be talking more about global finance management strategies, because that's what hte question was asking. Q28 was asking specifically about Sources of Funds.. and if you look under the syllabus at Topic 2 that's Debt/Equity financing etc...

 

[Stilla]

Spot on Acid.

 

[cammo27]

i looked at 27 and said no way. In 28 i just spoke about the 3 sources of finance- domestic finance market, International finance market and Eurocurrencies. i duno whether i shoulda gone into the specific like internal and external sources of funds, and like debt and equity. BUt the question seemed to be more focused on the global sources of finance

 

[username]

It merely said discuss sources of funds to finance a global expansion. Sources is debt and equity. They are more than adequate forms of financing a global expansion. For example becoming a public company and selling shares will bring in a heap of equity which in turn will allow a business to expand overseas.