Finance

Question 1

Internal Sources

Answer 1

Sources of money from within the business, from the owner or from previous business income

Question 2

External Sources

Answer 2

Sources of money from outside the business, from other people putting money into the business

Question 3

Owners Funds

Answer 3

Money put into the business from private savings of the owners.

Question 4

Retained Profits

Answer 4

Profit that the owners can decide what to do with-spend on themselves or use to expand and improve the business

Question 5

Sale of an asset

Answer 5

Possessions the business no longer needs can be sold off to raise money for needed investments

Question 6

Grants

Answer 6

Money given by the government to help creation of the business-Does not need to be paid back

Question 7

Venture capital

Answer 7

business person who invests for share of profits

Question 8

Hire Purchase

Answer 8

When you buy an asset and pay for it monthly until its payed off (similar to leasing)

Question 9

Trade Credit

Answer 9

not immediately paying suppliers for stock, given a certain amount of days to pay eg, 30 days

Question 10

Share Capital

Answer 10

money paid by share holders to become owners of a limited company

Question 11

Crowd-Funding

Answer 11

small amounts of capital from large number of individuals to finance new business venture. give rewards/returns for investments