Unit 25 (Source of finance)

Business needs money…

• To sell assets
• To invest
• To pay for day-to-day expenses
• For start-up capital
• To expand

Which source of finance can be used for a start-up business?

• Selling assets
• Retained profit
• Loan
• Personal savings

Internal sources of finance are

• Generated by the business from its own means
• Obtained from outside the business

Exteranl sources of finance are

• Generated by the business from its own means
• Obtained from outside the business

Select internal sources of finance

• Loan capital
• Personal saving
• Share capital
• Selling assets
• Retained profit

Select external sources of finance

• Share capital
• Personal saving
• Trade payables
• Selling assets
• Crowdfunding

Select short term sources of finance

• Share capital
• Credit cards
• Bank overdraft
• Hire purchase
• Trade payables

Select long term sources of finance

• Mortgages
• Credit cards
• Bank overdraft
• Venture capital
• Debenture

Retained profit is?

• kept for the business
• given to shareholders
• paid to the suppliers
• received from customers

Profit paid to the shareholders is called?

• retained profit
• provided profit
• distributed profit
• payback profit