LO 6 : Finance

What Are Internal Sources vs. External Sources?

• Internal Sources : Sources of finance from outside the business

• Internal Sources : Sources of finance from within the business

• External Sources : Sources of finance from outside the business

• External Sources : Sources of finance from within the business

• None of the above

Retained Profit : What Type Of Source Is It?

• Internal

• External

• Both

• Neither

2 Advantages of Retained Profit :

• No interest needs to be payed

• Interest must be paid

• No Repayment Needed

• Must be repayed

2 Disadvantages of Retained Profit:

• Only available to known businesses who have profit

• New businesses don't have retained profit

• Many small businesses don't have enough profit

• Available to no businesses

• Difficult to do

What Are Retained Profits ?

Answer explanation

Profits remaining in the business after the owner/s have taken their share of profits

Sale of Non- Current Assets : What Source Is It?

• Internal

• External

• Both

• Neither

What Are 2 Advantages Of Selling Non-Current Assets?

• No Need For Repayment

• No Interest To Be Paid

• Interest Must Be Paid

• Need For Repayment

What are 2 Disadvantages Of Selling Non- Current Assets?

• Could Be Time-Consuming

• May not be possible to find buyers

• Neither

• Both

What Is Sale Of Non-Current Assets?

What Is Reducing Stock?