Internal Sources Of Finance Flashcards

1
Q

Internal

A

Money raised inside the business

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2
Q

Internal sources of finance

A

1-personal savings
2-selling assets
3-retained profit

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3
Q

Personal savings

A

Someone’s savings they saved personally that they invest into their business
Adv- don’t have to pay any interest
Disadv- could be risky, may not be able to afford investing it all and may loose it all of business fails

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4
Q

Retained profit

A

Profit that a business saves while it’s been operating
Adv- don’t have to pay interest
Disadv-may not be enough to fund long term projects

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5
Q

Selling assets

A

Selling something with value in return for money
Adv- cheap source of finance as
Disadv-

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