3.2 - Sources of Finance Flashcards
1
Q
what are sources of finance
A
means through which a business may obtain money
* internal and external sources of finance
2
Q
what are internal sources of finance
and give examples
A
internal sources of finance are those which originate from inside of the business
- retained funds
- retained assets
- sale of assets
3
Q
what are external sources of finance
and give examples
A
external sources of finance are those that originate from outside of the business
- share capital
- loan capital
- overdrafts
- trade credit
- crowdfunding
- leasing
- crowdfunding
- business angel
4
Q
personal funds definition
A
when owners invest their own money into the business
5
Q
pros and cons of personal funds
A
