Entrepreneurship joint venture Assignment Example | Topics and Well Written Essays - 1000 words

Entrepreneurship joint venture - Assignment Example Contents Abstract 1 Contents 2 Introduction 3 Importance of venture and Working capital 4 Forms of business finance 4 Advantages and disadvantages of Venture Capital as source of finance 5 Salient issues around venture capitalists 6 Conclusion and recommendations 7 References 7 Introduction Venture capital is a form of financing that is widely used by small, medium, and large enterprises in economy. Venture capital is also referred to as equity financing owing to the fact that it addresses the financing needs of a firm in exchange of stake in the firm in question. This form of equity financing is often pursued by firms, which do not have the capacity to seek financing from other traditional financing modes like those sourced through the banks and public markets. It is worth noting that there are other forms of financing options, which the business can decide to explore to cater for its growth strategy and other operations (Mclaney & Atrill, 2006). Such options include loans from bank s, debentures, owner’s capital, and grant finance. Importance of venture and Working capital Venture and working capital are critical for any form of business that is starting up. The business under focus in this case is a beverage company known as Thasta (Mclaney & Atrill, 2006). The company by its nature needs both venture and working capital to realize increased business performance. ... sound working capital, it is important that the business possess an aggressive credit policy besides ensuring that there is operational efficiency at the facility (Mclaney & Atrill, 2006). On the other hand, it is important to take note that venture capital is equally important for the startup of the business because it does not affect the liquidity of a business. A business that is just starting operations rarely has revenue hence may not be able to afford loans or debenture leaving venture capital option as the best option for the company since it does not involve any financial obligations. It is worth noting that with regard to venture capital the various operations and projects of the company are financed in exchange for the shares of the company. Forms of business finance Apart from the venture capital, there exist other forms of capital, which include loans, debentures, owner’s capital, and grants. Loans are funds, which are advanced to the business by financial institut ions such as Banks. According to Mclaney and Atrill (2006), it is worth noting that loans attract interest over and above the principal amount. The business must therefore ensure that it regularly repays the principal amount and accruing interest. A debenture is yet another form of business financing option, which is available to the business. According to Mclaney and Atrill (2006), debentures are loan stocks, which are given subject to a trust deed. The debentures can be either redeemable or irredeemable. The firms can also raise capital for the expansion projects of the firm through equity shares. The only downside to equity shares is that it reduces the shareholding capacity of the company. Mclaney and Atrill (2006) say that grant is another form of financing option, which the firm can

Public Relations Essay Example | Topics and Well Written Essays - 1250 words

Public Relations - Essay Example Corporate social responsibility will always be given the emphasis that it richly deserves because it makes or breaks an organization in the sheer sense of the word1. To start with, public relations aim to focus on the aspect of building credibility for the sake of the organization in the eyes of the publics so that they can think, act and feel positive about the organization, the individual or an entity for that matter. The public relations are usually given importance because the organizations know that they will be able to derive a great amount of mileage from the intended publics as they aim to touch upon new avenues and explore the novel pathways upon which these publics can be reached in essence. What is most important is the fact that ethical manifestations start making the rounds of the discussions which center on the premise of public relations and the related corporate social responsibility2. ... Since public relations are all about understanding how the organization should be viewed by the public in terms of its important dealings, it will never afford to have a negative word about its own self. The role of public relations within the corporate social responsibility ranks is all the more necessary to gain an insight from. This is because public relations have always been forthright about the organization’s corrective stance no matter how difficult it is to reveal to the varied publics. This gains importance with the changing times since people are now properly realizing how they must be treated at the hands of these organizations and what kind of attitudes rule the roost at the end of the day. Public relations will always assist in building up a corporate social responsibility understanding as it takes care of the problems which arise every now and then, and assures one of complete responsibility and commitment to an organizational cause. The role of the public relati ons at improving and enhancing the levels of corporate social responsibility should be such that there is empathy within the related ranks, and this shall mean success for the organizations in the long run. If corporate social responsibility understandings are properly managed, then this would immense success for the organization because these are run parallel with the public relations domains4. The management regimes of the organizations always look at addressing the grey areas so that these weaknesses could be plugged and turned into strengths in a very free flowing manner5. Since the corporate social responsibility measures take care of the ethical look of the organization and thus it creates harmony amongst the aegis of the organization, it would always