Understanding Organisations in their Context, 5th Edition

Session D

Sources of finance

1

Introduction

You've decided that a holiday would do you good. Corfu looks ideal but you've only saved £400 of the £900 cost. What can you do? You might ask the bank for an overdraft if you think you can repay it quickly, or perhaps a personal loan if it's going to take a year or more to pay back.

Organizations have similar problems. Any activity, and particularly any major investment, needs financing. If you work in a large organization your work area probably has a budget for expenditure each year. Perhaps additional money can be asked for in the case of major changes. But where does that money for the ...