internal sources of finance Flashcards
1
Q
internal sources
A
Money from within the business
2
Q
owners funds
A
Money put in the business from owners private savings
3
Q
owners funds advantages
A
no need to pay interest or repay finance,retention of ownership
4
Q
owners funds disadvantages
A
amount limited,stress on the day to day finance of individual
5
Q
retained profits
A
The owners can choose to spend profits on themselves or use to expand and improve business
6
Q
retained profits advantages
A
no need to repay,instantly available,no additional costs (interest),control isn’t lost
7
Q
retained profits disadvantages
A
limited funds available,shareholders may prefer short term returns on their investment,not option for start up business
8
Q
sale of asset
A
possessions they no longer need can be sold off to raise money for other investments
