spurces of finance

Question 1

savings

Answer 1

Money from the owner(s) of the business

Question 2

Reserves

Answer 2

Retained profits that are kept in the business

Question 3

Share issue

Answer 3

Money received from the shareholders, who are the owners of a limited company

Question 4

venture capital

Answer 4

Loans and/or shares for small & medium sized firms who are considered too risky by banks.

Question 5

crowd funding

Answer 5

Inviting a large number of investors to each provide a relatively small loan or amount of share capital

Question 6

hire purchase

Answer 6

Paying for vehicles or equipment with an initial deposit followed by monthly repayments plus interest.

Question 7

Trade credit

Answer 7

Buying stock and paying for it later (e.g. after 30 days)

Question 8

SWOT analysis

Answer 8

Strenth and Weakness
Opportunities and Threats

Question 9

strength and weakness

Answer 9

● leadership (e.g. quality of decision making)
● financial position (e.g. profits or, cash flow)
● marketing (e.g. products, pricing, advertising and other promotional activities)
● operations (e.g. location, production methods, quality, efficiency or technology)
● human resources (e.g. size, skills or motivation levels of the workforce)

Question 10

Opportunities and Threats

Answer 10

● Social factors

● Technological factors

● Economic factors

● Environmental factors

● Political factors

● Legal factors

● Ethical factors

● Competitor factors