Introduction to Business Assignment Example | Topics and Well Written Essays - 1000 words

Introduction to Business - Assignment Example While raising capital to start a small business, an individual can start by financing the businesses himself. Several benefits such as retaining all the profits are associated with this form of financing, but if a small business need to grow large then it needs to look for other options (Alterowitz, 2007. P.14). Next best alternative is to ask for assistance from family members and relatives for finance. For this purpose an entrepreneur has to make the effort of making his relatives realize that he/she has a great investment plan and will be quite successful. In very rare instances family and friends invest in a business; if an entrepreneur faces such a scenario, he/she can obtain assistance from the government (Great Britain, 2006, p.18). Government has various plans where they finance small businesses or provide money in shape of grants to entrepreneurs to start up their own business. If an entrepreneur is not eligible for such government support options, the business can obtain a loan from banks to start small businesses. Due to failure of large businesses and the risk of high amount of loss associated with large businesses, banks and governments are more willing to finance small businesses. One of the major decision made by a manger is to identify the cost of producing a product and then price the product according to make profit when they sell their goods and services. For this purpose they can use activity based costing method, by using this method they can calculate the cost of an activity.