Profit Calculation

Sources of Finances 

Legal Structures 

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  • Created by: kim
  • Created on: 08-10-11 11:10

Internal Sources

Retained Profit and Sale of Asset 

Retained Profit - is the profit which the company or business makes and doesn't distribute as it used for exanspion, buying eqipments or investing in other businesses. 

Sale of Asset - is when the business sale's it's asset to be used for other necessities.  

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External Sources - Long Term

Shares - An part of the business is given away to the share holder so any profit made the owner has to give that % of money to share holder and in return they give an fixed amount of money towards the business. 

Bank Loan - (bank loan) a loan made by a bank; to be repaid with interest on or before a fixed date

Mortgage - The charging of real (or personal) property by a debtor to a creditor as security for a debt.

Government - Government funds a business in an area where unemployement is high, so by opening new businesses it would increase the number of jobs available and also it promotes the area. 

Vebture Capitlist - a person who makes money available for innovative projects (especially in high technology).

Debentures - An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.

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External - Short Term

Over Draft - a bank account caused by drawing more money than the account holds.

Trade creditTrade credit of an arrangement between businesses to buy goods or services on account, that is, without making immediate cash payment. 

Leasing - Grant (property) on lease; let

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