Sources of Finance

Here’s the full set of flashcards covering all the Key Terms in your screenshot:

Flashcard 1
Q: What are business angels?
A: Wealthy individuals who invest their own money in small- to medium-sized businesses with high growth potential.

Flashcard 2
Q: What is crowdfunding?
A: Raising finance for a business or project by gathering small amounts of money from a large number of people, usually online.

Flashcard 3
Q: What are external sources of finance?
A: Funds obtained from outside the organization, such as loans, overdrafts, or selling shares.

Flashcard 4
Q: What is an initial public offering (IPO)?
A: When a business becomes a publicly traded company by selling shares on a stock exchange for the first time.

Flashcard 5
Q: What are internal sources of finance?
A: Funds generated from within the organization, like personal funds, retained profit, or the sale of assets.

Flashcard 6
Q: What is leasing?
A: Renting an asset from its owner, where the lessee pays regular fees to use it.

Flashcard 7
Q: What is loan capital (debt capital)?
A: Medium- to long-term finance from lenders, such as mortgages, business loans, or development loans.

Flashcard 8
Q: What are long-term sources of finance?
A: Funds available for more than 12 months, used to purchase fixed assets or expand a business.

Flashcard 9
Q: What is microfinance?
A: Financial services for small entrepreneurs, often aimed at low-income groups or women.

Flashcard 10
Q: What are overdrafts?
A: A short-term borrowing option allowing businesses to spend more than is in their bank account, up to a set limit.

Flashcard 11
Q: What are personal funds?
A: Savings used by an entrepreneur to finance their business, common for start-ups.

Flashcard 12
Q: What is retained profit?
A: The portion of a business's profit kept for reinvestment after paying taxes and dividends.

Flashcard 13
Q: What is the sale of assets?
A: Selling unused or obsolete assets to generate cash.

Flashcard 14
Q: What is share capital?
A: Money raised by a company from selling shares.

Flashcard 15
Q: What is a share issue (share placement)?
A: Raising additional finance by selling more shares in an existing company.

Flashcard 16
Q: What are short-term sources of finance?
A: Funds available for less than a year, used for day-to-day operations, like overdrafts or trade credit.

Flashcard 17
Q: What are sources of finance?
A: The various ways businesses obtain funds, such as personal savings, loans, or share capital.

Flashcard 18
Q: What is a stock exchange?
A: A regulated marketplace where shares of publicly traded companies are bought and sold.

Flashcard 19
Q: What is trade credit?
A: An arrangement where a business can buy goods or services and pay later, typically within 30–60 days.