sources of business finance Flashcards
1
Q
internal sources
A
sources of money within the business from the owner
2
Q
external sources
A
sources of money outside the business from other people
3
Q
owner funds
A
money that is put into the business from private savings of the owners.
4
Q
retained profits
A
businesses make profit. the owners can decide to spend these on themselves or use them to expand and improve the business
5
Q
sales of an asset
A
business possessions that they no longer need. can be sold off to raise money needed for other investents.
6
Q
bank loan
A
business will borrow a sum of money and must be repaid over time with interest
7
Q
over draft
A
pre-arranged amount of money that the business is allowed to use, and pay back when it likes.
