2 - Influences Flashcards
(6 cards)
1
Q
What are the main influences on finance?
A
Internal sources, External debt, External equity, Financial institutions, government, global market
2
Q
Two types of internal sources
A
Retained profits and owner’s equity
3
Q
Difference between debt and equity financing?
A
Debt = borrowed money (Must be repaid)
Equity = selling ownership (no repayment)
4
Q
6 financial institutions that influence finance
A
Banks, unit trusts, finance companies, superannuation funds, ASX, investment banks, life insurance
5
Q
ASIC’s role
A
Regulates corporate behaviour, enforces company law
6
Q
How does global market influence financial decisions
Not in exam
A
Interest rate fluctuations, exchange rates, and global availability of funds affect borrowing and investing.
