influences on financial management

Question 1

what are the influences on financial management

Answer 1

financial institutions
internal and external sources of finance
global markets
governments

FIGG

Question 2

internal sources of finance definition + types of internal finance

Answer 2

funds generated from inside the business

retained profits (outcomes of the business)
from business owners (owners equity)

Question 3

external finance definition + categories

Answer 3

the funds provided by sources outside the business (banks, governments etc), however the business must generate sufficient earnings to make loan repayments

split into long-term and short-term debt, and equity

Question 4

debt finance definition

Answer 4

short-term and long-term borrowing from external sources

Question 5

short term borrowing (debt) :
what it is
types
where is it recorded

Answer 5

used to finance temporary shortages in cash flow, and is generally repaid within 12 months

overdraft
commercial bills
factoring

shown as current liabilities on the balance sheet

Question 6

overdraft

Answer 6

when a bank allows a business/individual to overdraw their cheque