Sources of finance

Question 1

What are the two types of finance?

Answer 1

Internal and External

Question 2

What are internal finances?

Answer 2

Finances from inside the business.

Question 3

Give examples of Internal finances?

Answer 3

Retained profits(money from last years profits)
Sell assets(selling machinery,cars)
Reduce stock levels.

Question 4

What are external finances?

Answer 4

Finances outside the business.

Question 5

Give examples of external finances?

Answer 5

Bank loan , lease , borrow from family , grants.