Sources Of Business Finance Flashcards
1
Q
Internal Sources
A
Sources of money from within the business from the owner
2
Q
External Sources
A
Sources of money from outside the business from other people.
3
Q
Owners Funds
A
Money that is put into the business from private savings of the owners
4
Q
Retained Profits
A
Businesses make profit, the owner can decide to spend it on themselves or use it to expand and improve the business
5
Q
Sales Of The Asset
A
Business will have possessions that they no longer need. They can be sold to raise money for other investments
6
Q
Bank Loan
A
Where the business will borrow a lump sum of money. Must be repaid with interest
7
Q
Overdraft
A
Pre-Arranged amount of money that the business is allowed to use. Can pay back when they like.
