Currently Flashcards
Advantage of a franchise
Established customer based brand
Easier to expand
Disadvantage of a franchise
Royalties leads to higher cash outflow
Damage brand image
Capital
Wealth in the form of assets
Assets
Anything valuable a business owns
Current assets
Assets a business turns into cash within a year
Non current assets
Assets a business expects to keep for more than one year
Owners capital
How much the owner has invested in the business
Intrest
A fee that needs to be paid back if you are borrowing money
Collateral
Amount of non current assets
Business angel
A wealthy entrepreneurs individual who provide capital in return for a proportion of company equity
What is the advtage of a business angel
They will have experience
Disadvtage of a business angel?
need to give up a percentage of businesss
Crowd funding
Raising small amounts of money from large number of people , typically via online platforms
Leasing
Allows business to benefit from the use of an asset without owning or buying it
Hire purchases
Using an asset whilst paying for it in installments
In the end you own it
