Sources of Finance Flashcard

Front

Retained profit

Back

Profit kept in the business after costs are paid

Front

Which of the following is an internal source of finance? Loan, Sale of assets, Overdraft, Trade credit

Back

Sale of assets

Front

What is a disadvantage of owner's capital?

Back

Risk of losing personal funds

Front

Which source of finance involves paying for equipment over time but not owning it until fully paid?

Back

Hire purchase

Front

What is a key advantage of crowdfunding?

Back

Raises awareness and funds simultaneously

Front

What type of business can issue shares to raise finance?

Back

Limited companies

Front

Which of the following is most suitable for a business needing immediate cash for short-term expenses?

Back

Overdraft

Front

Which external source of finance does not require repayment?

Back

Grant

Front

What is a disadvantage of selling assets to raise finance?

Back

It reduces the business’s future capacity

Front

Which of the following is a long-term source of finance? Trade credit, Overdraft, Venture capital, Retained profit

Back

Venture capital