grants \ dept Flashcards
1
Q
internal sources
A
sources of money from within a business from the owner previous business income
2
Q
external sources
A
sources of money from outside the business or from other people putting the money into the business
3
Q
advantages of owner funds
A
no need to pay interest or repay finance
retention of ownership by the individual
4
Q
disadvantages of owner funds
A
amount available may be limited
puts stress on day to day finance of the individual
5
Q
retained profits
A
when a business make profits the owners can decide to spend on themselves on put in into the business to make it better and expand
6
Q
advantages of retained profits
A
internal therefore no need to repay instantly
doesn’t include additional costs such as interest payments
