Business Studies - 0450 CIE

The Main Sources Of Finance:

Gbogbo ọrọ náà

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.

Ebumnobi

  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

Akọmọ Ojú-ẹkọ

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.

Ọ dị na ngwa Green Bridge

Budata ngwa Green Bridge CBT na ekwentị maọbụ kọmputa gị iji nweta akwụkwọ ndụmọdụ zuru oke, ajụjụ mmụta, na ndị ọzọ.

Akwụkwọ ndụmọdụ zuru oke nwere eserese
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Ọ dị na Android, Windows, macOS, na Linux

Ayẹwo Ẹkọ

Ekele diri gi maka imecha ihe karịrị na The Main Sources Of Finance:. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  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

Ọ dị na ngwa Green Bridge

Budata ngwa Green Bridge CBT na ekwentị maọbụ kọmputa gị iji nweta akwụkwọ ndụmọdụ zuru oke, ajụjụ mmụta, na ndị ọzọ.

Akwụkwọ ndụmọdụ zuru oke nwere eserese
Onye inyeaka mmụta AI
Mụọ n'ụzọ na-enweghị ịntaneti, oge ọbụla, ebe ọbụla
Ọ dị na Android, Windows, macOS, na Linux

Ọ dị na ngwa Green Bridge

Budata ngwa Green Bridge CBT na ekwentị maọbụ kọmputa gị iji nweta akwụkwọ ndụmọdụ zuru oke, ajụjụ mmụta, na ndị ọzọ.

Akwụkwọ ndụmọdụ zuru oke nwere eserese
Onye inyeaka mmụta AI
Mụọ n'ụzọ na-enweghị ịntaneti, oge ọbụla, ebe ọbụla
Ọ dị na Android, Windows, macOS, na Linux

Meecha Ajụjụ Ule Ọmarịcha

Ị chọrọ ime ajụjụ ule ọmarịcha gbasara The Main Sources Of Finance:? Budata ngwa Green Bridge CBT iji nweta ajụjụ ule ọmarịcha na nyocha zuru ezu gbasara isiokwu a.

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