Unit 2: Finance in the Hospitality Industry

The hospitality industry ranks among the most popular service industry citing the provision of professional services as the primary kind of operations on offer for some nominal fees (Ivanović, 2000). The aspect of revenue earning, controlling of expenditure, financial management decisions, capital structure decisions, budgeting and costing of services offered are a vital element of hospitality industry finance understanding. A good comprehension of balancing between the finance concepts is of the essence in the setting up and the subsequent development of a hospitality entity regarding financial growth and performance (Padhi and Vijay, 728). Financial concepts review of restaurants Source of Funding The source of funding refers to the originator of finances to set the business running until it can literally make an income on its own. The source of funding utterly represents the primary finance provider for the initial capital venture for a particular business (Jang and Kwangmin, 42...