internal + external

Question 1

internal finance

Answer 1

-comes from inside the business
-quick and easy way to get money
-saves borrowing and having to pay back interest
-some businesses may not have enough and therefore have to find external sources instead
-used for small amounts of money

Question 2

external finance

Answer 2

-comes from outside the business
-usually needs to be paid back, sometimes with a high interest
-used for larger amounts of money

Question 3

internal sources:

Answer 3

-personal or business savings
-retained profits
-selling fixed assets

Question 4

external sources:

Answer 4

-bank loans
-loans from family and friends
-trade credit
-government grants
-hire purchases