Sources of business finance

This is the cash that is generated by the business when it operates successfully

• Retained profits

• Share capital

• Angel investor

• Owner savings

Which of the statements about retained profits is false?

• You have unlimited amounts of money available

• Shareholders and employees could be frustrated because there is less profit to be 'shared out'

• You do not have to pay interest

• You are free to use it for any purpose

Which of the following is NOT usually considered a personal source of finance.

• 
• 
• 
• 

What does internal mean?

• A source from within the business
• A source from outside the business

Which is an example of an internal source of finance?

• Owners' Funds
• Hire Purchase
• Leasing
• Trade credit

What is start up capital?

• Finance needed before starting trading.
• Finance paid after trading.
• Finance paid to banks.

Profit is important to businesses because:

• it improves businesses, cash balances
• it can be used to measure business size
• it is a measure of businesses, success
• businesses need to pay taxes to the government

Working capital is sometimes called as...

• life of money
• life of blood
• life of soul
• life of human

What is capital expenditure?

• Money spent for fixed assets which last about 6 months.
• Money spent for fixed assets which last about for more than a year.
• Money spent on a day-to-day basis.
• Money spent per hour rate.

Explain the word in the image