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financing the enterprise (SOF) Flashcards

1
Q

is crowd funding a short/medium/long term source of financing for enterprises.

A

Long term.

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2
Q

is the owner’s capital personal savings a short/medium/long term source of financing for enterprises.

A

short term.

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3
Q

is a retained profit a short/medium/long term source of financing for enterprises.

A

long term.

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4
Q

are sales of assets a short/medium/long term source of financing for enterprises.

A

long term.

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5
Q

are sales and leaseback a short/medium/long term source of financing for enterprises.

A

medium term.

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6
Q

are bank loans a short/medium/long term source of financing for enterprises.

A

medium term.

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7
Q

are investments from fam, friends and other businesses a short/medium/long term source of financing for enterprises.

A

long term.

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8
Q

are business angels a short/medium/long term source of financing for enterprises.

A

long term.

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9
Q

are ventrue capitals a short/medium/long term source of financing for enterprises.

A

long term.

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10
Q

are gov. grants a short/medium/long term source of financing for enterprises.

A

long term.

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11
Q

are trade credits a short/medium/long term source of financing for enterprises.

A

short term.

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12
Q

is debt factoring a short/medium/long term source of financing for enterprises.

A

short term.

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13
Q

is hire purchasing a short/medium/long term source of financing for enterprises.

A

short term.

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14
Q

are share issues a short/medium/long term source of financing for enterprises.

A

long term.

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15
Q

describe the SOF - share issue

A

when a company makes new shares available for sale for private and public limited companies only.

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16
Q

describe the SOF - Hire Purchasing

A

paying a monthly rental fee to use the item.

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17
Q

describe the SOF - debt factoring

A

when a biz sells the invoices (money owned to another biz).

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18
Q

describe the SOF - trade credit

A

when items are brought from suppliers on a ‘buy now pay later’ basis.

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19
Q

describe the SOF - gov. grants -

A

fixed amount of capital provided to biz’s by the gov. or other orgs to fund specific projects.

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20
Q

describe the SOF - venture capital

A

when an established biz invests in another biz, in return for a percentage equity in the biz.

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21
Q

describe the SOF - biz angels

A

when wealthy individuals make investements into start-up biz’s in return for a share of the businesses.

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22
Q

describe the SOF - fam, friends and other biz

A

investment from people known to the entrepeneur.

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23
Q

describe the SOF - crowd funding ( peer to per lending)

A

when individuals or biz’s raise funds without going to institutions like banks.

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24
Q

describe the SOF - owners capital - personal savings.

A

when an entrepreneur invests their own money into a biz.

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25
Q

describe the SOF - retained profit

A

profit kept within a biz to help finance future activites.

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26
Q

describe the SOF - sales of assets -

A

assets are items of value owned by a biz, which can be sold in order to get lots of capital - thus financing their biz.

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27
Q

describe the SOF - sales and leaseback

A

selling an item to someone and then renting it back from them.

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28
Q

describe the SOF - bank loans

A

a set of money provided for a specific pupose to be repaid with interest over a set period of time.

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29
Q

State the positives of the SOF - bank loans
- how easy to secure
- cash flow
- benefits of fixed interest rates.

A
  • quick and easy to secure.
  • improve cash flow
  • fixed interest rates allows firms to budget
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30
Q

State the positives of the SOF - sales and leasebacks

A

has a quick inflow of cash whilst still being able to use the item.

31
Q

State the positives of the SOF - sales of assets

A
  • no interest charges or repayments needed.
  • turns an obsolete asset into finance.
32
Q

State the positives of the SOF - retained profit

A
  • avoids interest repayements
  • does not dilute the biz’s ownership.
33
Q

State the positives of the SOF - owner’s capital

A
  • no interest needed
  • no lengthy application processes
34
Q

State the positives of the SOF - crowd funding

A

allows start-ups and entrepreneurs to raise money without needin bank loans.

35
Q

State the positives of the SOF - debt factoring

A
  • imrpves cash flow
  • you can get what you want sooner.
36
Q

State the positives of the SOF - trade credit

A
  • doesn’t incure interest
  • gives the biz more cash to use in the immediate future.
37
Q

State the positives of the SOF - gov. grants

A
  • provide employement
  • reduce negative environmental impacts
38
Q

State the positives of the SOF - venture capital

A
  • easy to attract other Sources of finance.
  • provides the required capital for exapnsion.
39
Q

State the positives of the SOF - biz angels

A
  • may offer support + expertise
  • form groups to share research and make joint investments.
40
Q

State the positives of the SOF - fam, friends and other biz’s

A
  • repayment forms and conditions may be flexible.
41
Q

State the positives of the SOF - hire purchasing

A
  • less dependent on credit score
  • flexible repayment terms.
42
Q

State the positives of the SOF - share issues

A
  • finance raised doesn’t need to be paid back.
43
Q

State the negatives of the SOF - share issues -

A

shareholders become part owners of the biz.

44
Q

State the negatives of the SOF - hire purchasing

A
  • they dont own the item until the final product is made.
45
Q

State the negatives of the SOF - debt factoring

A
  • have to pay interest
  • signals that a business is in trouble, so customer and suppliers will lose confidence.
46
Q

State the negatives of the SOF - trade credit

A

can only be sued to trade certain goods..

47
Q

who is a loser

A

vicky

vicky

and vicky again

WELL DONE!!!!!!!!!!!!!!!!!!!!!

48
Q

State the negatives of the SOF - gov.grants

A

only offer a % of the cost of your project.

49
Q

State the negatives of the SOF - venture capital

A

long and complex
- partial loss of ownership.

50
Q

State the negatives of the SOF - biz angels

A
  • high risk, as the biz isn’t established but angels will assess the potential for reward.
51
Q

State the negatives of the SOF - fam, friends and other biz’s

A

amount may be limited, and can place pressure on relationship.

52
Q

State the negatives of the SOF - bank loans

A
  • interest must be paid regarldess of financial performance.
53
Q

State the negatives of the SOF - sales and leaseback

A
  • no longer own the item so can’t use it for guarentee.
54
Q

State the negatives of the SOF - sales of assets.

A
  • only a one off option.
  • loss of use of asset and future assets.
55
Q

State the negatives of the SOF - retained profits.

A

reduces the security blanket of keeping retained profits for an emergency day.

56
Q

State the negatives of the SOF - owner’s capital

A
  • limited amounts available and threat to personal finances and family.
57
Q

State the negatives of the SOF - crowd funding

A
  • fail to reach their funding goals.
58
Q

is the source of finace internal / external - Crowd funding

A

external source

59
Q

is the source of finace internal / external - owners capital

A

internal

60
Q

is the source of finace internal / external - retained profit

A

internal source

61
Q

is the source of finace internal / external - sales of assets

A

internal source

62
Q

is the source of finace internal / external - sale and leaseback

A

internal

63
Q

is the source of finace internal / external - bank loans

A

external source

64
Q

is the source of finace internal / external - bank loans

A

enxternal source

65
Q

is the source of finace internal / external - fam, friends and other biz

A

external source

66
Q

is the source of finace internal / external - biz angels

A

external source

67
Q

is the source of finace internal / external - venture capital

A

external source

68
Q

is the source of finace internal / external - gov. grants

A

external source.

69
Q

is the source of finace internal / external - trade credit

A

external source

70
Q

is the source of finace internal / external - debt factoring

A

external source

71
Q

is the source of finace internal / external - hire purchasing

A

external source

72
Q

is the source of finace internal / external - share issue

A

external source

73
Q

C’mon vicky that was all piss easy
(PTO)

IF YOU DELETE THIS CARD THEN ILL DELETE ALL THE CARDS WE’VE MADE SO FAR HEHEHEHE

A

If you still dont get it then god also can’t help you

LOSERRRRRR

LOVE YOU LOTS
- YOUR FAVE <3

Business (12 decks)

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