Chapter 6 _ Source of finance

Question 1

Source of finance

Answer 1

The way in which an enterprise gets the money it needs to finance an activity.

Question 2

Founders

Answer 2

The people who start a company.

Question 3

Start-up

Answer 3

The period of an enterprise when it is first set up.

Question 4

Finance

Answer 4

The activities of an enterprise relating to money

Question 5

Internal source of finance

Answer 5

Money that is found within the enterprise.

Question 6

External source of finance

Answer 6

Money that is found outside the enterprise.

Question 7

Interest

Answer 7

Often, when an enterprise borrows money from a lender they well have to pay back the amount they borrow plus an agreed amount. The additional amount. The additional agreed amount. the additional amount is known as the interest.

Question 8

Assets

Answer 8

Objects that are owned by the business

Question 9

Start-up sof 1 pg[79]

Answer 9

Personal savings( internal source of finance)

Investment from family and friends( external sof)

Bank overdrafts( external sof)

Question 10

Start-up sof 2

Answer 10

Leasing (external sof)

Mortgages( external sof)

Community sources (external sof)

Question 11

Start-up sof 3

Answer 11

Grants( external sof)

Subsidies( external sof)

Crowdfunding ( external sof)

Selling shares ( external sof)

Question 12

1. Continue trading and expansion sof pg [83]

Answer 12

Personal savings( internal sof)

Retained profits

Private institutions

Question 13

2.Continue trading and expansion sof

Answer 13

Venture Capital

Issue shares