8. Raising Finance.

Question 0

External sources of finance

Answer 0

Those that are outside the business

Question 1

Internal source of finance.

Answer 1

Finances raised from within the business

Question 2

Overdraft.

Answer 2

A temporary arrangement which allows the business to draw out more money than is in its account up to an agreed Time.

Question 3

Loan.

Answer 3

A good source of finance for assets such as machinery and equipment and startup costs.

Question 4

Incorporated

Answer 4

Process of forming a limited liability company. Involves creating a separate legal identity for the business and the creation of shares or equity.

Question 5

Venture capitalist.

Answer 5

Pro investor interested in high growth, high risk businesses, who invest in return for shares expecting a high return. Large investment.

Question 6

Business angel

Answer 6

A wealthy individual willing to invest in small, high risk businesses who expects a high return. High potential for growth.

Question 7

Crowd funding.

Answer 7

Funding a new business by raising small amounts of money from a large number of people