Sources of Finance Flashcards
1
Q
2 type of soures of fiance
A
Internal and External
2
Q
What is internal fiance
A
Funds found inside of the usiness
2
Q
What is external finance
A
finance found from sources outside of the business
2
Q
Egs of internal fiances
A
retained profits
sale on no current assets that are not required
3
Q
4 things that are assesed fro risk
A
Collateral
Liquididty - ability of bororower to make regular payements of the debt
history -
guarators - ppl who will pay debts for some1 else if they cant
3
Q
eg of external finances
A
leasing
credit card
trade credit
overdraft
4
Q
Finanical intsituitions will anaylse risk and return before lending moeny to small businesses
A
5
Q
2things that are assesed fro return
A
interest rates
future busineess
6
Q
A
