Finance for.... Fixed assets 1.Retained profit 2.Share capital 3.Bank loan 4.Hire purchase 5.Leasing Working Capital [to help cash flow] 1.Trade credit.

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Presentation transcript:

Finance for.... Fixed assets 1.Retained profit 2.Share capital 3.Bank loan 4.Hire purchase 5.Leasing Working Capital [to help cash flow] 1.Trade credit from suppliers [creditors] 2.Overdraft from the bank [current liabilities] to be able to describe different sources of finance

Finance for.... Fixed assets 1.Retained profit 2.Share capital 3.Bank loan 4.Hire purchase 5.Leasing Working Capital [to help cash flow] 1.Trade credit from suppliers [creditors] 2.Overdraft from the bank [current liabilities] to be able to describe different sources of finance p.85 p.84 p.85 p.86

to be able to describe different sources of finance Shareholders own the business. They put in money in return for a share in the business. At the end of each year the business hopes to make a profit. One part is kept in the business. This is called r………………. p……………… The rest is paid to shareholders as d………………...

The business cannot afford the van. So, the ……….. loans the money to …………………. The business then pays the bank …………….. The bank makes a profit by charging …………………..

Comparing options Raising capital by borrowing is good because ….. A disadvantage of borrowing is…. Raising capital by selling shares is good because …. A drawback however is….

to be able to describe different sources of finance

p.85

to be able to describe different sources of finance

Comparing options Buying an asset by hire purchase is good because ….. A disadvantage of hire purchase is…. Buying an asset by leasing is good because …. A drawback however is….

Finance for.... Fixed assets 1.Retained profit 2.Share capital 3.Bank loan 4.Hire purchase 5.Leasing Working Capital [to help cash flow] 1.Trade credit from suppliers [creditors] 2.Overdraft from the bank [current liabilities] to be able to describe different sources of finance

Shareholders own the business. They put in money in return for a share in the business. At the end of each year the business hopes to make a profit. One part is kept in the business. This is called r………………. p……………… The rest is paid to shareholders as d………………...

to be able to describe different sources of finance