Internal Sources Of Finance

Question 1

Net current assets

Answer 1

Money that is immediately available to the business (cash)

+ quick way of raising money

• may have to accept a lower price for its inventory

Question 2

Retained profit

Answer 2

Some of the profits are kept within the business and not given out to shareholders or owners

+ doesnt have to be repaid and no interest need to be paid

• not available to new business / many companies may not make sufficient profits

Question 3

Sales of assets

Answer 3

Vehicles , buildings, equipment can be sold to give the money cash

+ a good way of raising funds for assets thats are no longer needed

• may be slow as assets may take time to sell