business finance Flashcards
1
Q
internal sources
A
sources of money in the business from owner or previous business income
2
Q
external sources
A
sources of money outside the business e.g. other people
3
Q
internal sources
A
owners funds
retained profits
sale of an asset
4
Q
owners funds
A
money from private savings of owners e.g. inheritance , savings or redundancy pay
5
Q
advantages
A
no need for interest or repay finance retention of ownership or repay finance
6
Q
disadvantages
A
amount limited stress on day to day finance
7
Q
Retained profits
A
profits used on business or owners also called ploughed back profits
8
Q
advantages
A
no need to repay instantly no interest
9
Q
disadvantages
A
limited founds not an option for a start up
10
Q
sale of asset
A
possessions not needed can be sold
