Internal Sources Of Finance Flashcards
1
Q
Internal
A
Money raised inside the business
2
Q
Internal sources of finance
A
1-personal savings
2-selling assets
3-retained profit
3
Q
Personal savings
A
Someone’s savings they saved personally that they invest into their business
Adv- don’t have to pay any interest
Disadv- could be risky, may not be able to afford investing it all and may loose it all of business fails
4
Q
Retained profit
A
Profit that a business saves while it’s been operating
Adv- don’t have to pay interest
Disadv-may not be enough to fund long term projects
5
Q
Selling assets
A
Selling something with value in return for money
Adv- cheap source of finance as
Disadv-
