Sunday 18 January 2009

Business homework(2)

Small business loan plan unveiled:
1.Why is the government targeting small firms?
Answer:Small business just need small fund...and with their target money,if they help big business ,they won't help enough...with their money,if they help small business ,they will help many firms...
2.Explain why small firms in particular suffer working capital difficulties
Answer:the money can be used for working capital -to pay wages for example- or for new investment...The bank must certify that these loans are in addition to loans that they otherwise make...
3.How else can small business improve cash flow:
Answer:
-Taking in new investors
-Borrowing
-Selling assets
-Increasing sales
-Debt factoring
-Improving credit control...

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