unit 5 adv and dis Flashcards
1
Q
adv and dis of owners capital
A
+no need to repay
-risk savings
2
Q
adv and dis of retained profit
A
+no interest
-business may not have made profit
3
Q
adv and dis of sale of assets
A
+good if selling off old equipment
-may be difficut to sell
4
Q
adv and dis of overdraft
A
+meets short term cash flow problem
-interest charged per day
5
Q
adv and dis of trade credit
A
+no interest if repaid on time
-goods must be paed even if they dont sell
6
Q
adv and dis of new partner
A
+new skills
-have to have say in running business
7
Q
adv and dis of loan
A
+money available immediately
-interest
8
Q
adv and dis of share issue
A
+new investors can contribute lots of money
-owners have to give shareholders say in company
9
Q
adv and dis of crowdfunding
A
+no need to repay
-ownership shared if money through investment
