RESEARCH PAPER BUSINESS AND FINANCE STUDIES (Essay Sample)

BUSINESS FINANCE By………………. Code + course name Professors Name University Name City, State Date Table of Contents Background to Research …………2 Scoping the Research…………….3 Proposed Methodology…………...4 Proposed Plan of Work……………6 Research Background Business finance encompasses a range of disciplines and activities revolving around the management of money and other valuable assets. Business finance consists of: various investment strategies, effective debt management, and accounting methodologies. Business owners should have a firm understanding of the finance principles to keep their businesses lucrative. Financial decisions impact both the risk and profitability of a firm’s operations. A rise in cash holdings, for example, lessens risk, but since money is not an earning possession, changing other assets to cash reduces lucrativeness (Bell, 2014). More debt can raise profitability while increasing thus striking balance between profitability and risk. Business financing is done in different ways. Equity financing can be acquired through several avenues. Investment from angel stockholders or venture capitalists can provide an influx of capital. More established firms can sell and incorporate shares of stock to raise debt debt-freely without diluting control and ownership of the company. Making profitable and wise investments can fund business operations. Investing in conservative products like trusted dividend-paying stocks, interest-bearing bank deposits, and blue-chip bonds can diversify a business’ income thereby evading risks in the marketplace. Business finance is an issue pertinent to varying business contexts. It is therefore essential to research it as it is appropriate for the chosen business context. Finance is the key form of analyzing data for business research. It informs a business on how to best use its monetary resources. Research on business finance as an issue relevant to changing business contexts is important since it focuses on improving cash flow, tax considerations, internal control, time value of money, risk management, and buying versus leasing. Research on business finance is necessary since it is the main form of analyzing data in a business. It provides a platform to study business cycles, growth, payroll, debt ratios, and starting capital. Without capital, business ideas cannot be actualized (Gill and Johnson, 2010). Debt ratios affect the ability to attract investors. Good credit, favorable supply, smart investments, real estate arrangements, and cash savings help maintain a business’ momentum and keep lots. For a business to develop, one has to weigh their options for attaining growth financing and consider the cost of achievement. Financial planning to guarantee payroll is also essential in maintaining the longevity and integrity of a business. Business finance research is useful since businesses have to deliberate on their finances for several purposes ranging from endurance in bad times to boosting the next accomplishment in good times. Business financing affects one’s ability to purchase goods, employ staff, acquire licenses, develop and expand. Research on financing is important to business owners, potential business ventures, and even finance students. Scoping the Research The main problem that this research sees this research seeks to address used in business financing. The research question here is “What risks are involved in business financing?” Some of the risks involved in business financing include too much debt, relinquishing control, inability to retire, ruined personal relationships, and losing assets (Bryman and Bell, 2015). Large debts can take up marketing or supply funds. Debts are also repellent to potential investors. Other forms of financing may require one to relinquish control of operations. For instance, in equity financing, the stakeholders also have a say in the running of the business. Losing assets is a danger to business financing. For instance, obtaining bank business loans usually require collateral to obtain the loan such as a car, a house, land, or any other, valuable asset. If the business fails, one risks losing valuable assets. Another risk related to business finance is ruined personal relationships. The pressure to repay loans could ruin relationships between trustees and business owners (Ghauri & Gronhaug, 2010). To reduce the risks involved, business owners and companies should: Review internal controls which provide balances and checks for the company, develop a risk management strategy, and employ the services of an inside coil. Research on business financing aims to elaborate on the meaning and importance of business financing. It gives information on the significance of finance and the risks involved in business financing. It also shows ways to reduce the risks involved. Its purpose is to provide in-depth information on business financing. The main objectives of this research are: To provide information on business financing, explain the complaints that come with the same, and make a proposal for the tools that could be applied to avert these said risks. Proposed Methodology The most appropriate approach to conduct this research is the inductive research approach. This is because the scope of the research starts with a research question and thereafter puts forth the problem that’s to be addressed by conducting the research. The research also states its objectives. By examining business financing, we gee research question “What risks are involved in business financing?” Research methods to be applied in data collection include Interviews, direct observation, and questionnaires (Blumberg, Coopper, and Schindler, 2014). Interviewing small business owners, company managers and stakeholders helps provide appropriate data required in analyzing business financing. Both structured and open interviews enable researchers to acquire the needed information. Structured interviews will be performed using survey forms. The interviewees fill the forms appropriately with guidance. This will help acquire written information, especially with records and facts from company managers open-ended interviews will help in obtaining information from small business owners. The information is interpreted and analyzed during the interview. It should be done by well-trained enumerators and observers. This method is appropriate since the interviewer can reframe the questions in case of ambiguity and the interviewee’s reactions ions can be o...