Business Studies - 0450 CIE

The Main Sources Of Finance:

Akopọ

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.

Awọn Afojusun

  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

Akọ̀wé Ẹ̀kọ́

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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Ìdánwò Ẹ̀kọ́

Oriire fun ipari ẹkọ lori The Main Sources Of Finance:. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.

Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.

Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.

  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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Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
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O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

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Ṣe o fẹ ṣe adaṣe awọn ibeere idanwo adaṣe nipa The Main Sources Of Finance:? Ṣe igbasilẹ ohun elo Green Bridge CBT lati wọle si awọn ibeere idanwo adaṣe ati awọn ayẹwo adaṣe kikun fun koko-ọrọ yii.

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