Sources of Capital

Interest can be defined as:

• a charge for lending money

• the amount owed for borrowing money

• the amount added into your savings account when opening a bank account

• a charge for convenience of accessing money in your bank

Tags

CCSS.7.RP.A.3

Small amounts of money from a large number of people are raised vie the internet

• venture capitalists
• crowd funding
• share issue

Organisations that invest in established businesses in return for equity (ownership percentage)

• crowd funding
• venture capitalists

Which are factors that would affect the source of finance chosen

• What you sell

• Interest rates

• Location

What can finance be used for?

• Giving the owners a wage

• To give yourself more profit

• Buying new equipment

You have to pay a grant back

• False

• True

A disadvantage of a bank loan

• Use the money on what you want

• Interest Rates

• Pay it back in installments

A disadvantage of a Business Angel (Venture capitalist)

• Free money

• Get advice as well as the money

• Give away some share of the business

What's an advantage of crowdfunding?

• Might not get all the money you want

• You don't have to pay the money back

• You don't have to give a share of your business

Which of the following is a source of capital

• Friends and Family

• Crowd Funding

• Selling Stuff