Business Section 7 Flashcards
1
Q
What are the appropriate sources of finance for businesses?
A
- savings
- reserves
- overdraft
- loan
- mortgage
- credit card
- hire purchase
- trade credit
- venture capitalist
- share issue
- crowd funding
2
Q
What is the meaning of Internal and external sources of finance?
A
Internal source of finance is funding obtained from the business itself such as retained profit.
External source of finance is funding obtained from outside of the business such as a bank loan.
3
Q
What is the meaning of long and short term financial needs?
A
Short term financial needs are when a business require finance for up to 12 months.
Long term financial needs are when a business requires finance for longer then 12 months.
