Sources of finances

What is an example of external growth?

[blank_start]Owner's Capital[blank_end] is when the possessor use their own savings

[blank_start]Overdraft[blank_end] is an arrangement with a bank that the business can spend more money than it has in its bank account.

[blank_start]Trade credit[blank_end] is when the business does not need to pay the supplier for goods for the period of time

[blank_start]A loan[blank_end] is an amount borrowed from a bank or lender for a stated purpose

[blank_start]Share issue[blank_end] is when new shares are sold, raising money for the business. The buyers become shareholders.They are part-owners of the business

[blank_start]Crowdfunding[blank_end] is when money is raised from 'sponsors' usually by advertising a business idea on a fund raising website

Which of these is an internal source of finance

Some sources of finance are [blank_start]short[blank_end] term and must be paid back within a year.

Others sources of finance are [blank_start]long[blank_end] term and can be paid back over years

Which one is the odd one out?

A mortgage is a special loan for buying property.

Debentures are [blank_start]loans[blank_end] made to a company.

Grants from charities or the government help businesses get started, especially in areas of high employement

An over draft is _