theme 2.1 Flashcards
1
Q
two sources of finance
A
internal and external
1
Q
sources of finance
A
how the business gets money to deal with cash flow problems
2
Q
factors to consider
-external
A
more expensiver due to intrest
3
Q
factors to consider
-retained profit
A
shareholders lose some profit
4
Q
factors to consider
-time
A
when the finace is required
5
Q
internal finance
A
from inside the business
6
Q
benefit of internal finance
A
cheap and flexible
can be used for r&d
7
Q
use of internal source of finance
A
control working capital and cash flow
8
Q
working capital
A
amount of money a business has to pay expenses
9
Q
working capital formula
A
current assest - current liabilities
