Business Finance Flashcards
1
Q
Internal Sources of Finance
A
Money that is generated from within the business or from the business owners own capital.
Owners own money - investing owners own saving into the business.
Retained profits - saving profits for future use.
Sales of assets - Selling assets that are no longer required, eg buildings, machinery
2
Q
Owners own money
A
Advantages
—————-
- Get money straight away
- Cheap form of finance (no interest)
Disadvantages
———————
- Limited to what they have
- Not a regualr source of finance
- The owner might not want to invest own savings.
