2.1.1 Internal Finance

Question 1

What is internal finance

Answer 1

Finance that come from within the business

Question 2

Types of internal finance

Answer 2

Sale of assets (selling something the business owns)
Owners funds (own money)
Retained profit (previous profits invested)

Question 3

Advantage and disadvantage of owners funds

Answer 3

• can be limited
  + no interest

Question 4

Advantages ad disadvantages of sale of assets

Answer 4

• loose assets in balance sheet
  + can obtain large sum of capital

Question 5

Advantages and disadvantages of retained profits

Answer 5

• controlled by the business
  + no interest