2.1.1/2.1.2 Internal finance/external finance

Question 1

what is retained profits?

Answer 1

Retained profits are the most important source of finance to a business.

Question 2

what is meant by the sale of an asset?

Answer 2

the sale of an asset refers to the sale of something which cannot be spent e.g- Car, machinery, land.

Question 3

what are some external sources of finance?

Answer 3

family, friends, loans, overdrafts

Question 4

What are some methods of finance?

Answer 4

Loans, share capital, overdrafts