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

What does internal mean?

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

Which is an example of an external source of finance?

• Owners' Funds
• Sale of assets
• Retained profits
• Bank loan

Which is an example of an internal source of finance?

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

The source of finance that is provided by the Owners is called 

• Capital
• Overdraft

Funds that are required to purchase fixed assets like land and building, plant and machinery, and furniture and fixtures is known as

• fixed capital

• working capital

Select the working capital examples

• cash

• receivables

• inventory

• land and building

Name the investors who get priority over equity shareholders while paying dividend and repayment of capital

• preference shareholders

• debentureholders

• retained earnings

A trading concern will require more fixed capital as compared to a manufacturing concern.

• True

• False

A firm with slow sales turnover, credit sales or a firm during peak season will require ___ working capital

• more

• less