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BUSINESS > CH8- RAISING FINANCE > Flashcards

CH8- RAISING FINANCE Flashcards

0
Q

Ordinary Share Capital

A

Finance raised from shareholders in return for a share certificate and part ownership of the company which entitles them to a share of the profits.

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1
Q

Sources of Finance

A

Personal

Ordinary share capital

Venture capital

Loan

Overdraft

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2
Q

Benefits of Share Capital

A
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3
Q

Drawbacks of Share Capital

A
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4
Q

Loan Capital

A

Money provided with evidence of ability to payback, with an agreed interest rate and payback time.

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5
Q

Bank Loan

A

A sum of money provided by the bank with evidentiary payback, and agreed interest rate and for a specific, agreed purpose.

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6
Q

Overdraft

A

When a bank allows an individual to overspend in their current account up to an agreed limit.

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7
Q

Venture Capital

A
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8
Q

Personal Sources of Finance

A
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9
Q

Choosing a Source of Finance

A

Legal Structure

Use of finance

Amount required

Profit levels

Risk

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BUSINESS (19 decks)

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