sources of finance Flashcards
1
Q
examples of internal sources of finance
A
retained profit
personal savings
improved management
sale of assets
2
Q
what is retained profit
A
profit made gets put back into the business
3
Q
examples of external sources of finance
A
family and friends loans crowd funding peer to peer funding business angels
4
Q
what is crowd funding
A
small investors put money into business
5
Q
what are business angels
A
they invest into a business without having a say in the business and without taking a percentage of the revenue
6
Q
examples of external methods of finance
A
loans share capital venture capital leasing overdraft trade credit grants
7
Q
what is venture capitals
A
people who invest into a business and get an agreed percentage of the revenue
8
Q
what is an overdraft
A
account can go into the minus
9
Q
what is trade credit
A
obtaining` goods or services from another business
10
Q
what is a grant
A
hand outs to small businesses from local authority or government
