Flashcards
Sources of Finance Cards
Cards in this deck (9)
- 1Name the three internal sources of finance...Divestment - selling off a part of the business
Personal savings
Reduction of current assets -e.g reducing amount of stock - 2What are the three time periods of finance?short term; 1-3 years
medium term ; 3-10 years
long term; 10 years or more - 3What is mean by the sale of fixed assets?selling something of value e.g a car. A fixed asset means it is a product that is usually kept for a long time.
- 4What is a retained profit?Money that is made and then kept
- 5What is sale and lease back?when a business sells off assets to a finance company and then rent the asset for monthly fee. This means the company can have quick money but also have use of the assets.
- 6name 3 external sources of short term finance.*trade credit- getting things in advance to paying
*overdraft - owing money to the bank
*loan - 7name 3 midterm external sources of finance.*leasing - renting something for a monthly fee
*hire purchase -paying monthly until paid off and then owning the product
*loan - 8name 3 long term external sources of finance*loan
* crowd funding - investors from the general public
*mortgages
* share capital - inviting people to buy shares
venture capital - asking specific investors/ organisations to buy shares - 9—
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- Business/Economics (Finance) Flashcards on Sources of Finance Cards, created by Tamara Lancaster on 19/10/2016.
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- Tamara Lancaster
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