Chapter 24, Sources of Finance Flashcards
1
Q
Working Capital
A
short-term finance required for the day to day running of a business
2
Q
Cashflow
A
a business needs sufficient inflows and of cash to finance its day to day outgoings
3
Q
Short-Term finance
A
needed for day to day running of a business
- Overdraft
- Loan
- Trade Credit
- Factoring
- Hire-Purchase
4
Q
Medium-Term Finance
A
a period between three and ten years
- Medium term loan
- Leasing
5
Q
Long-term Finance
A
excess of ten years
- Lomg- term loans
- Debentures
- Issue of Shares
- Sales and leaseback
- Retained profit
6
Q
Stock Market
A
a market where shares and debentures are bought and sold only public companies have their shares traded on the stock market
7
Q
Other sources of finance
A
- Government assistant
- Depreciation
- Venture capital and business angles
8
Q
Venture Capital
A
finance from individuals or firms who lend money to, or buy shares in, small and medium-size businesses that required finance for standing up
