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Sources of Finance
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What source of internal finance does the image illustrate?
Retained profit
What source of internal finance does the image illustrate?
Owner's money
What source of internal finance does the image illustrate?
sale of business assets
What source of external finance does the image illustrate?
Bank overdraft/Bank loan
What source of external finance does the image illustrate?
Hire purchase
What source of external finance does the image illustrate?
Lease
Is selling an asset a kind of an internal source of finance? Yes or No?
Yes.
Is cash in your bank account a kind of external source of finance?
No. It is an internal source of finance.
Is personal savings a source of finance? Yes or No?
Yes
What is meant by a finance?
it means money.
The best source of finance would depend upon the size and type of ownership of a business. TRUE/FALSE
TRUE. Small businesses are limited to Bank loans, Overdraft, Savings, retained profits and family
Retained profits means what?
It means money left over in a business from previous years
Is selling an asset a source of finance?
Yes. It means you are selling something you don't need to get some money
An overdraft from a bank is a short term finance with high interest charges. TRUE/FALSE
TRUE
Hire purchase means paying for machinery over a long period of time. TRUE/FALSE
TRUE