internal sources

Question 1

internal

Answer 1

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

Question 2

owner funds

Answer 2

money put in from the owners private savings. many businesses are started using the owners funds.

Question 3

owners funds advantages

Answer 3

no need to pay interest or repay finance, retention of ownership.

Question 4

owners funds disadvantages

Answer 4

amount available limited. stress on the day to day finance of the individual.

Question 5

retained profits

Answer 5

when businesses make profits the owners decide to spend these on themselfs or expand the business.

Question 6

advantages of retained profits

Answer 6

internal, no need to repay, control is not lost

Question 7

disadvantages of retained profits

Answer 7

limited funds available
shareholders may prefer short term results
not an option for start a start up

Question 8

sale of an asset

Answer 8

business’ have possessions that are no longer needed these can be sold off to raise money for other investors.