BUSINESS FINANCE

What does internal mean?

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

What does external 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

• Venture Capital

• Overdraft

• Trade credit

Which is an example of an external source of finance?

• Owners' Funds
• Hire Purchase
• Retained profits
• Sale of assets

What is an advantage of a bank loan?

• There will be little or no interest
• You can pay in smaller installments
• They are quick and easy to arrange
• You don't have to pay it back

What is an advantage of owners' funds?

• There will be little or no interest
• You can pay in smaller installments
• They take a long time to arrange
• You don't have to pay it back

Short Term sources of finance usually require money to be repaid within.....

• 1 week

• 1 month

• 6 months

• 1 year

Long Term sources of finance are for when the time needed to pay the money back is more than...

• 6 months

• 1 year

• 5 years

• 10 years