sources of finance

Question 1

what is equity finance

Answer 1

The funds contributed by the owner(s) to start and expand their business.

Question 2

what is a pro and con of equity finance

Answer 2

Does not have to be repaid unless the owner(s) leaves the business.

The owner(s) may expect a good return on their investment, but a small amount of finance will only generate low profits and low returns.

Question 3

what are two ways equity finance can be raised

Answer 3

through family and friends or self funding

Question 4

is equity finance internal or external

Answer 4

internal