internal sources

Question 1

internal

Answer 1

sources of money within the business from owner or previous business income

Question 2

owner funds

Answer 2

money put in to the business from private savings of owners.

Question 3

owner funds advantages

Answer 3

no needs to pay interest or repay finance

retention ownership by individual

Question 4

owner funds disadvantages

Answer 4

may be limited

stress on the day to day finance of individual

Question 5

retained profits

Answer 5

when businesses make profits, owners decide to spend these on themselves or use it to expand and improve the business.

Question 6

retained profits advantages

Answer 6

no need to repay
instantly available
no additional costs such as interest payments
control not lost

Question 7

retained profits disadvantages

Answer 7

limited funds available
may prefer to see short term returns
not an option for start up business

Question 8

sale of an asset

Answer 8

some businesses will have possessions they no longer need. can be sold to raise money for other investments these could be machinery, land, part of business