Case problem

Clariton Antiques Ltd was founded five years ago by four partners. It started as an unincolporated business and has grown slowly and steadily, and has developed a good reputation for selling antique items. It has 2 branches in London and is looking to acquire a building in Birmingham to open another branch. They would need to raise 0.5 million. They have few loans at presen! and could raise considerably more. It has been suggested, though, that this is the time for the firm to 'go public' and raise the money that way

Task 1

You are required to:

1.1- Identiff the sources of finance available to;

a) Unincorporated business.

b) Incorporatedbusiness

1.2- Assess the implications for using;

a) Internal sources offinance

b) External sources offinance

1.3- Evaluate the most appropriate sources of finance for Clariton Antiques Ltd.

Task 3.2

For a company engage in production, the cost per unit is usually derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced' Since clariton is not engaged in production explain how unit costs will be calculated to make pricing decisions giving suitable example?

Task 4

Discuss the key components of financial statements;

1) Income statement

2) Statement of cashflows

3) Statement of changes in equity and gains

4)Statement of financial Position

5) Notes to the financial statement