Finace Flashcards
How are retained profits suitable for larger organisations
.can help with the business expansion
.no Interest to pay back
.can be spent in any way
How are sale of assets suitable for larger organisations
Can be help with business’s expansion
.no Intrest to pay back
.can be spent anyway
.free up ask that is tied up
How can bank loans be suitable for larger organisations
Loans are easy and fairly quickly to range
Business can spend it whatever way they like
How can grants be suitable for larger organisations
No repayment needed to be made
Good image generated cause the business is usally helping out their local area
How can I share issue be suitable for a larger organisation
 large amount of capital can be raised with out interest
. Shareholders have limited liability
How can debt factoring be suitable for a larger organisation
Improves cash flow
Protects against bad debts
How can debentures be suitable for a larger organisations
Financial protection
Fixed interest rates
How can venture capital be suitable for larger organisations
It enables businesses with a poor credit rating to obtain finance
How can crowd funding be suitable for larger organisations
Access to large amount of investors
Fast source of finance
How can mortgage be suitable for larger organisations
Large amount of finance can be raised quickly
Given a long period of time
Uses of cash budgets do a business
To show potential investors and lenders
To compare predicted spending with actual spending
Do measure the performance of different departments and set targets
To show periods of surplus
Solutions to cash flow problems
Offer discount fo customers for quicker Paymeng Sell any un used assets Arrange overdraft/ loan Cut costs .advertise to bring more sales
What is the purpose of an income statement
Shows annual profit / loss figure
Shows how much money has come into the business
What are the main elements of an income statement
Training account
Profit and loss account
What is a trading account
This calculates the gross profit and the gross loss
The money made from buying and selling
Calculated by sales
