Examining the source of finance in a manufacturing company

CHAPTER ONE

    INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Finance is how business organization manages their resources, which contribute to economic growth, the decision on the source of financing in manufacturing company is that most unavoidable and continuous aspect in forming company.   

Thus research works, geared toward focusing mainly on the sources of finance for manufacturing companies, attention will be the most profitable source for the company.

Finance is very importance and vital to the setting up of any business activity and could said to be bedrock of any business organization.

The material contained here is prepared bearing in mind the interest of the prospective investors who want invest their money in business and for a manufacturing company.

It is also for those who have be in business for quite a long time but have made little or no impressive progress because of lack of sufficient finance.    

When finance becomes available, industrial development is initiated and now investment opportunities arise, thus, newly development access to fund on reasonable terms indices or encourage manufacturer companies to expand there horizontal to conceivable opportunities.   

The word manufacturing means that are a process which involve tools and laboratory produce goods for use or sale .the term may refer to a range of human activity. In other words manufacturing is processes of a raw material are transferred into finished goods on a large scale.

A company is defined by C.J MARSHAL (1819) as associations of a person sanctioned by government act decree become a corporate body for a special purpose.

The Nigeria Company can define as manufacturing company as of formed and registered under the companies’ act 1968 or one formed and registered before enactment of the act.

Judging from the company act 1968, manufacturing company can be defined as a process where raw materials are transformed into finished goods.

1.2 STATEMENT OF THE PROBLEM

The future of the Nigeria economy resides in business, But there are money problem hindering the growth and development of there companies, while some of these problem are inherent other are exogenous.

The major problem confronting manufacturing company is finance because the growth and development of the firm is influence by the financial policies.

1.3   OBJECTIVE AND RELEVANT OF THE STUDY

The aim underlying the study of source of financing a manufacturing company can be summarized as follow;

1. An introduction to the different source of finance available to management.
2. An overview of the advantage and disadvantage of the different source of funds.

iii.    An understanding of the factor governing the choice between different sources of funds,

1. To educates and guide future analyst who may wish to undertake the study either as management account or financial analyst

1.4 SCOPE OF THE STUDY

Due to certain constraints the writer cannot carry out an intensive research in the project work. These constraints are;

–       The time associated to write up

–       Inadequate finance

–       Another constraint is those managers are not willing to disclose the affairs of the company.

1.5   PLAN AND ORGANIZATION OF THE STUDY

This study consists of five organized chapter have been designed to suit the topic of the study.

Chapter one give an insight into the study, it discusses the objective and importance of the study.

Chapter two deal with literature review. It deals with characteristics of manufacturing companies and theatrical insight into in to sources of finance and cost of capital.

Chapter three, describe the method of data collection from the organization under the study and the sample population.

Chapter four, this chapter form the care of the project where is data presentation and analysis and appraisal of the source base on information from the data collection.

Chapter five is a roundup of the study. it contains the researcher ‘summary, recommendation and conclusion.