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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 on theme: "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."— Presentation transcript:

1 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

2 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

3 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………………...

4 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 …………………..

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6 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….

7 to be able to describe different sources of finance

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9 to be able to describe different sources of finance

10 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….

11 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

12 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………………...

13 to be able to describe different sources of finance

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