1 FORCAST: is an attempt to
predict what will happen in the
future. AD:helps plan for future.
DIS: not always correct.
2 Over Draft: allows you to draw
more money out than you own,
intrest is charged on the daily
2.1 Trade Credit: When a business'
sells are good it may let another
business take goods without paying
straight away, normally an
agreement is made for them to be
paid with in 30 days or longer, this is
process is normally intrest free it
allows the business to sell them and
get the money before there paid for.
2.1.1 Retained Profit: Profit made by the
business but kept back for its own use,
maybe used to help finance and
purchasing of things (equipment, premises
188.8.131.52 Sale of Assets: selling off and turning into
something that the business owns, the
assets that are sold may no longer be
needed, this source may be used to help
finance the purchased equipment.
184.108.40.206.1 Bank Loan: an amount of money borrowed
from the bank usually for a stated purpose, the
bank take care with security in case the money
is not repaid the loan is usually for a fixed
period of time.
220.127.116.11.1.1 Lease: a method of keeping itemsfor a
stated period of time, at the end the items
are returned to the owner (company
cars, lorries computer equipment,
industrial units and buildings) monthly
annual payments depending on what
equipment it is.
18.104.22.168.1.1.1 Hire purchase: keeping item a in return for a
monthly payment over a set period of time
the items do NOT become the property of
the user until the final payment has been
made. (company cars, lorries etc..) a deposit
has to be made followed by monthly
payments may include interest rates.
22.214.171.124.126.96.36.199 Grant: money made
availble for a specific
purpose by government or
188.8.131.52.184.108.40.206.1 Owners investment: the exsisting
owners may invest money into the
business, maybe used to pay for a
major business development such
as a takeover or long term debts.
220.127.116.11.18.104.22.168.1.1 Cash in the bank: Money owned by the
business that is built up in the bank over time
due to sucsessful trading, can be used in day
to day business buy buying assets and funding
22.214.171.124.126.96.36.199.1.1.1 Mortgage: Along term method of
borrowing money it includes some
form of security, help fund the
purchase of a property. interest
charges seem to be lower than other
forms of finance the money borrowed
has to be repaid with little interest.
188.8.131.52.184.108.40.206.220.127.116.11 Taking a new partner: hold additional finanace by
selling of oart of the business to a new partner, they
may bring new skills to the business the finance
that the partner brings to the business may be used
to buy new equipment or to buy another
business.the partner will have to stay in the running
of the business and will be entitled to a share in the profits.
18.104.22.168.22.214.171.124.126.96.36.199.1 Share issue: a sorce of finance used by limited companies to raise
finance in return for a 'share' in the business, finance raised from a
shre issued may be used to fund a major business development such
as a takeover or extension to a factory, dividends may have to be paid
on the shares and each share represents part ownership of the
business. shareholders are entitled to have a say in the running of the