Basel Accord

Jun 18th, 2015
Studypool Tutor
Price: $10 USD

Tutor description

“A set of agreements set by the Basel Committee on Bank Supervision (BCBS), which provides recommendations on banking regulations in regards to capital risk, market risk and operational risk. The purpose of the accords is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.”

Word Count: 3228
Showing Page: 1/9
I. Various sources of finance available to Phat DucFor many businesses, the issue about where to get funds from for starting up, development and expansion can be crucial for the success of the business. It is important, therefore, that the owner of Phat Duc company understands the various sources of finance open to a business and are able to assess how appropriate these sources are in relation to the needs of the business.A - Internal SourcesTraditionally, the major sources of finance for a limited company were internal sources:1. Personal savingsQuite simply, personal savings are amounts of money that a business person, partner or shareholder has at their disposal to do with as they wish. If that person uses their savings to invest in their own or another business, then the source of finance comes under the heading of personal savings. For instance, in the case of Phat Duc, when setting up Phat Duc Super Ices, he used personal savings of USD450 to cover the main cost for the van itself.2. Retained profit When a business makes a profit and it does not spend it, it keeps it - and accountants call profits that are kept and not spent retained profits. The retained profit is then available to use within the business to help with buying new machinery, vehicles, computers and so on or developing the business in any other way. In the case, in the later stage of Phat Duc company, the owner used re-invested profits from the ice cream vans to set up the flats.3. Working capital

Review from student

Studypool Student
" Thanks for the help. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors