Chapter 8: Sources of Business Finance

Fixed capital requirement

Bank overdraft

Day to day operations

<p>Money or fund</p> Signup and view all the answers

<p>Growth and expansion</p> Signup and view all the answers

<p>Trade credit</p> Signup and view all the answers

<p>Profits reinvested in the business and funds procured by the owners</p> Signup and view all the answers

<p>Funds generated inside the business through activities like speeding collection of receivables and increasing profit</p> Signup and view all the answers

<p>Owner’s funds</p> Signup and view all the answers

<p>Profit retained within the business for future use</p> Signup and view all the answers

<p>Fixed capital requirement and working capital requirement</p> Signup and view all the answers

<p>More funds</p> Signup and view all the answers

<p>To adopt modern technology</p> Signup and view all the answers

<p>Higher investment in fixed assets</p> Signup and view all the answers

<p>Long-term sources, medium-term sources, and short-term sources</p> Signup and view all the answers

<p>Borrowings from commercial banks, public deposits, lease financing, and loans from financial institutions</p> Signup and view all the answers

<p>Internal sources are generated inside the business, while external sources lie outside the organization, such as suppliers, lenders, and investors.</p> Signup and view all the answers

<p>Trade credit, loans from commercial banks, and commercial papers</p> Signup and view all the answers

<p>Funds procured by the owners of a business, which may be a sole entrepreneur or partners or shareholders, and reinvested profits</p> Signup and view all the answers

<p>To retain a certain amount or percentage of profits for future use</p> Signup and view all the answers