Chapter 24, Sources of Finance Flashcards Preview

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Flashcards in Chapter 24, Sources of Finance Deck (8):
1

Working Capital

short-term finance required for the day to day running of a business

2

Cashflow

a business needs sufficient inflows and of cash to finance its day to day outgoings

3

Short-Term finance

needed for day to day running of a business
- Overdraft
- Loan
- Trade Credit
- Factoring
- Hire-Purchase

4

Medium-Term Finance

a period between three and ten years
- Medium term loan
- Leasing

5

Long-term Finance

excess of ten years
- Lomg- term loans
- Debentures
- Issue of Shares
- Sales and leaseback
- Retained profit

6

Stock Market

a market where shares and debentures are bought and sold only public companies have their shares traded on the stock market

7

Other sources of finance

- Government assistant
- Depreciation
- Venture capital and business angles

8

Venture Capital

finance from individuals or firms who lend money to, or buy shares in, small and medium-size businesses that required finance for standing up