internal sources of finance Flashcards
1
Q
Internal sources
A
Money from within the business from the owner
2
Q
Owner funds
A
Money put into the business from private savings of the owner
3
Q
Owner funds advantages
A
No need to pay interest and retention of ownership
4
Q
Owner funds disadvantages
A
Amount may be limited and puts stress on the individuals finance
5
Q
Retained profits
A
Owner decides whether to use the profits on themselves or the business
6
Q
Retained profits advantages
A
No need to repay immediately and no additional costs and control is not lost
7
Q
Retained profits disadvantages
A
Limited funds and not an option for start up businesses
8
Q
Sale of an asset
A
Possessions they no longer need to raise money for other investments
