Sources of business finance;Internal

Question 1

Internal sources

Answer 1

Within the business,from the owner or previous business income

Question 2

Internal examples:Owner funds definition

Answer 2

Money that is put into the business from the private savings of the owner

Question 3

Internal examples;Owner funds Advantages

Answer 3

• No need to pay interest or repay finance

- Retention of ownership

Question 4

Internal examples;Owners funds disadvantages

Answer 4

• Limited

- Stress on the day to day finance

Question 5

Internal examples;Retained profits definition

Answer 5

Profits that are use to grow,expand and improve the business

Question 6

Internal examples;Retained profits advantages

Answer 6

• Internal,no need to repay
• Instant
• Does not incur additional costs
• control maintained

Question 7

Internal examples;Retained profits disadvantages

Answer 7

• Limited funds
• Short term returns may be wanted on investments
• Not an option if you’re a new business