Finance Sources

Question 1

short term

Answer 1

sources of finance, trade credit, hire purchase, overdraft

Question 2

sources of finance

Answer 2

ways a business raises money to fund its operations

Question 3

trade credit

Answer 3

pay suppliers at a later date

Question 4

hire purchase

Answer 4

paying in instalments

Question 5

overdraft

Answer 5

banks allow a business to spend money they do not have, to help short term fall of cash

Question 6

long term finance

Answer 6

retained profit, personal savings, crowd funding, share capital, venture capital, loans

Question 7

retained profit

Answer 7

cheap, limited as business uses saved profit

Question 8

personal savings

Answer 8

investment of personal money

Question 9

crowd funding

Answer 9

encourages investors to put money into a business

Question 10

share capital

Answer 10

shareholders given a percentage of company, financial investment

Question 11

venture capital

Answer 11

offering of large amounts of capital for a part of a business, entrepreneur loses control

Question 12

loans/ mortgages

Answer 12

bank gives money to business