internal finance Flashcards
1
Q
internal finance
A
finance sourced from within the business
2
Q
give 5 examples of internal finance
A
personal savings retained profit share capital owners capital sales of assets
3
Q
what are advantages of internal finance
A
no interest to pay easily accessed no involvement of third party not subject to credit checks business can pay unexpected costs
4
Q
what are disadvantages of internal finance
A
used up straight away
limited amount
can affect owners financial situation
high opportunity cost
5
Q
capital expenditure
A
spending on items that can be used over and over again e.g a company vehicle
6
Q
revenue expenditure
A
refers to payments for goods and services that have either already been consumed or soon will be e.g wages
