AQA business sources of finance

What is ment by internal sources of finance

what are external sources of finance

what is retained profit and how is it used as a source of finance

Retained profit is the profit remaining after tax and dividends payout , reinvested into the business as an internal source of finance funding things such as expansion and debt payment .

what are advantages of using retained profit

what are disadvantages on relying on retained profit

Due to insufficient profits funding large scale projects will be difficult additionally reducing shareholder dividends leading to shareholder dissatisfaction

what is ment by selling assets as a source of finance

why might a business choose to sell assets

what are the risks of selling assets for finance

what is an overdraft and when is it typically used

A short term bank facilty allowing a business to withdraw beyond its account balance covering temporary cash flow shortages

what are the advantages of an overdraft

what are the disadvantages of an overdraft

what is a bank loan and how does it function as a sourece of finance

why might large frms prefer a bank loan

what are thew risks of taking out a bank loan

what is share capital and how is it raised

what are advantages of issuing out share capital

what are the disadvantages of share capital

what is venture capital and who typically uses it

what are the benefits of venture capital for a business

what are the draebacks of venture capital

what is crowdfunding and how does it work

why might a start u choose crowdfunding

what are the risks of crowdfunding for a business

what is trade credit and how does it support cashflow

what are the advantages of trade credit

what are the disadvantages of trade credit

what is gearing and how does it infleunce finance choices

how do intrest rates affect the choice of debt financing

why might a business prefer intenral over external sources

how shoud a growing sme choose the most suitable sourceof finance