Business Studies - 0450 CIE

The Main Sources Of Finance:

Bayani Gaba-gaba

Every business needs money: to start up, to pay day-to-day bills, and to grow. But where should that money come from? Borrow it, raise it from owners, sell shares, or use profit the business has already made? Each source has a cost and a catch, and choosing the wrong one can be as damaging as having no finance at all.

In this lesson you will sort the main sources of finance into internal and external, and short-term and long-term, meet newer options such as micro-finance and crowdfunding, and learn the factors that decide which source is best. By the end you will be able to recommend and justify a source of finance for a given business.

Manufura

  1. Internal sources and external sources with examples
  2. Short-term and long-term sources with examples, e.g. overdraft for short-term finance and debt or equity for long-term finance
  3. Importance of alternative sources of capital, e.g. micro-finance, crowd-funding
  4. The main factors considered in making the financial choice, e.g. size and legal form of business, amount required, length of time, existing loans
  5. Recommend and justify appropriate source(s) of finance in given circumstances

Takardar Darasi

The source of finance affects a business's costs, risk and even who controls it. Matching the right source to the right need, short-term finance for short-term needs, long-term for long-term, keeps a business healthy. Exam questions very often ask you to recommend and justify a source, so understanding the choices and the factors behind them is essential.

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Nazarin Darasi

Barka da kammala darasi akan The Main Sources Of Finance:. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  1. Which is an internal source of finance? A. a bank loan B. retained profit C. a share issue D. a government grant Answer: B
  2. Which source of finance is available only to limited companies? A. owner's savings B. issue of shares C. overdraft D. trade credit Answer: B
  3. The most suitable source to cover a short-term cash shortage is: A. a 25-year debenture B. an overdraft C. a new share issue D. selling the factory Answer: B
  4. Raising finance from many people who each invest a small amount online is called: A. factoring B. crowdfunding C. leasing D. hire purchase Answer: B
  5. A general rule when choosing finance is to match the source to the: A. colour of the product B. use and time period of the need C. number of competitors D. weather Answer: B

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Cikakkiyar bayanan darasi tare da zane-zane
Mataimakiyar koyo da AI
Yi karatu ba tare da intanet ba, a kowane lokaci, a ko'ina
Akwai a Android, Windows, macOS, da Linux

Akwai a cikin manhajar Green Bridge

Zazzage manhajar Green Bridge CBT a wayar ka ko kwamfyuta ka don samun cikakkiyar bayanan darasi, tambayoyin aiki, da ƙari.

Cikakkiyar bayanan darasi tare da zane-zane
Mataimakiyar koyo da AI
Yi karatu ba tare da intanet ba, a kowane lokaci, a ko'ina
Akwai a Android, Windows, macOS, da Linux

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