External Finance Flashcards
1
Q
Give examples of external finance
A
Owners capital
Mortgages
Hire purchase
Loans
Grants
Donations
2
Q
2 advantages of owners capital
A
No interest charges
Do not have to repay
3
Q
2 disadvantages of owners capital
A
Limited amounts available
Threat to personal finances
4
Q
1 advantage of venture capital
A
Expertise to help the business
5
Q
1 disadvantage of venture capital
A
Long and complex process
6
Q
1 advantage of debt factoring
A
Receive a large amount of the debt immediately
7
Q
1 disadvantage of debt factoring
A
Reduces profitability due to paying a fee to the financial institution
