internal sources of finance

Question 1

owners fund

Answer 1

the money that is put into the business from the private savings of the owners

Question 2

advantages of owners fund

Answer 2

there is no need to pay interest or even repay the finance.

retention of ownership by the individual

Question 3

disadvantages of owners funds

Answer 3

amount available may be limited

puts stress on the day to finance of the individual

Question 4

retained profits

Answer 4

when a businesses make profits, the owners can decide

to spend these on themselves or use it to expand the business

Question 5

advantages of retained profits

Answer 5

internal, therefore no need to repay

instantly available

dose not incur additional costs such as interest payments