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Sources of Finance

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  • Is personal savings a source of finance? Yes or No?
    Yes
  • What source of internal finance does the image illustrate?
    Retained profit
  • Is cash in your bank account a kind of external source of finance?
    No. It is an internal source of finance.
  • What source of external finance does the image illustrate?
    Bank overdraft/Bank loan
  • 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
  • An overdraft from a bank is a short term finance with high interest charges. TRUE/FALSE
    TRUE
  • What source of external finance does the image illustrate?
    Lease
  • What source of external finance does the image illustrate?
    Hire purchase
  • 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
  • What source of internal finance does the image illustrate?
    sale of business assets
  • Hire purchase means paying for machinery over a long period of time. TRUE/FALSE
    TRUE
  • What is meant by a finance?
    it means money.
  • Is selling an asset a kind of an internal source of finance? Yes or No?
    Yes.
  • What source of internal finance does the image illustrate?
    Owner's money
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