Finance

Question 1

List sources of finance

Answer 1

Debt Factoring, Overdraft, Retained Profits, Shared Capital, Loans, Venture Capital, Crowdfunding

Question 2

What is debt factoring?

Answer 2

An external source of finance that improves cash flow

Question 3

What is retained profit?

Answer 3

Cheapest form of finance, as the money isn’t borrowed it doesn’t have to be paid back

Question 4

What is share capital?

Answer 4

Both private and public can gain revenue from selling of shares

Question 5

What is a loan?

Answer 5

a loan is money borrowed from a bank in order to be invested. (a loan is more likely to be granted if a business is profitable)

Question 6

What is venture capital?

Answer 6

an external source of income which is invested into the business by stakeholders with a return that is dependant on profits and growth

Question 7

What is crowd funding?

Answer 7

Finance gained from investors online such as the seers on gofundme.com