3592632
Beschreibung
Mindmap von KatnissGranger, aktualisiert more than 1 year ago
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Erstellt von KatnissGranger
vor fast 9 Jahre
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Sources of finance
- Internal
- Retained profit
- Does not have to be repaid
- No interest to pay
- New business won't have retained profits
- Small firm profits may be too low
- Keeping more profits in the business reduces payments to owners
- Does not have to be repaid
- Retained profit
- Sale of existing assets
- Makes better use of the capital tied up in the business
- Does not increase the debts of the business
- Takes time, amount raised is never certain until asset is sold
- Not available for new businesses
- Makes better use of the capital tied up in the business
- Sale of inventories to reduce inventory levels
- Reduces opportunity cost
- Must be done carefully to avoid dissapointing cutomers, if not enough goods are kept as inventory
- Reduces opportunity cost
- Owners' savings
- Should be available to firm quickly
- No interest is paid
- No interest is paid
- Savings may be too low
- Should be available to firm quickly
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