License Fee P2 Business

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License fee
A License fee is when viewers will pay a television license yearly. By paying this they will get BBC channels, which is given to the viewers from the license, they pay yearly. A government grant and the license fee, which is paid by TV viewers, only fund this. This also means BBC are not funded by any sort of advertisements because they are a non-profit organization. This means that they will not make money from any sorts of adverts such as ITV as BBC is not a channel that does advertising.

Subscription
Subscriptions are another way of how the television industry is funded. A subscription is when television users make an agreement to pay to get extra channels. Companies such as Sky and Virgin are companies who have a wide range …show more content…

Private capital companies usually fund companies that have just started up this way they don’t have to apply for a loan. This helps the owner of the business to run the business without any stress of having to pay back a loan to the bank. Although, investors are investing money into the business, they do ask a price back from the business. This price could be based on the percentage of the company they have invested in.

Financial aid
Financial aid is when a person or a group will help another company financially. It is when a company is given money to support financial problems, as this will help the business to come out a financial crisis. This is because if the business closes down the unemployment rate will increase and this will affect the whole country. The government gives out financial aid to the business, if they think it will affect the country.
For example if a movie producer/ director was in need of money for his movie he may ask Warner Brothers for funding. Financial aid is a way of funding people money for their situation. This helps out people, as they will be funded by bigger and better organisations that are willing to fund the smaller