External Source Of Finance Flashcards
1
Q
External source of finance
A
Money raised outside a business
2
Q
8 external sources of finance
A
1-hire purchase
2-share capital
3-mortgages and loans
4-loans from family+friends
5-government grants
6-crowd funding
7-trade credit
8-venture capital
3
Q
Share capital
A
When a business sells shares for a percentage of their business in return for investments
4
Q
Hire purchases
A
When you pay for something in monthly instalments
5
Q
Trade credit
A
When creditors allows businesses to delay payments
6
Q
Government grants
A
The government
7
Q
Mortgages and loans
A
Spread the costs of something over a long period of time
E.g house
8
Q
Loans from family+friends
A
9
Q
Venture capital
A
