Raising Finance Types — categories?
Internal and external sources of funding.
Internal Finance — definition?
Funds generated within the business, e.g., retained profits.
Internal Finance — main sources?
Retained profits and sale of assets.
External Finance — types?
Short-term and long-term external funds.
Retained Profits — role?
Reinvested profits after dividends.
Trade Credit — example?
Delaying supplier payments.
Bank Overdraft — benefit?
Flexible borrowing with interest on used amount.
Long-term external finance — includes?
Loans and share capital.
Advantages of internal finance?
No interest or ownership dilution.
Pon a prueba tus conocimientos con 9 preguntas sobre Financial Strategies for Business Success.
1. How do internal and external finance primarily differ in their sources?
2. What is a primary advantage of internal finance over external finance?
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