internal sources Flashcards
1
Q
internal
A
sources of money from within the business, from the owner or the previous business income.
2
Q
owner funds
A
money put into the business from the owners private savings. Many business are started by using this method.
3
Q
owner funds advantages
A
no need to pay interest or even repay finance
4
Q
owner funds disadvantages
A
the amount available may be limited
5
Q
owner funds advantages
A
retention of ownership by the individual
6
Q
retained profits
A
when businesses make profits, the owner can decide to spend these on themselves or use some to all the profits to expand and improve there business.
7
Q
advantages of retained profits
A
internal, therefore no need to repay instantly available
8
Q
disadvantages of retained profits
A
may be limited funds available to the business at that time
