2.1.1 Internal finance Flashcards
1
Q
define finance
A
management of the investment needed to open,run and grow a business
2
Q
reasons for internal finance
A
- to pay debts
- help the business over a slow trading period
- to expand
- to start up a business
- to buy stocks
3
Q
define owners capital
A
shows stake in business may have used savings to start up
4
Q
pro owners capital
A
dont have to pay back
5
Q
con owners capital
A
cant get it back once gone
6
Q
who is owners capital for
A
sole trader and partnerships
7
Q
define retained profit
A
profit from within the business used to invest back into it to grow and expand
8
Q
pro retained profit
A
no interest
9
Q
con retained profit
A
gone, cant be used again
10
Q
define sales of assets
A
something a business owns with value
11
Q
sales of assets con
A
unable to use again
doesnt appear on balance sheet-less attractive
