Source of finace 0.0 / 5 ? Business StudiesFinanceGCSEEdexcel Created by: Ronel.pCreated on: 15-04-18 18:30 What are source of finance where business can obtain money 1 of 11 what does source of finance assist(3) business start up/ with operating cost e.g salaries, supplies, elctrcity bills./ expansion costs of a business e.g investing in new technology 2 of 11 short-term sources of finance definition(1) are for small amounts of borrowing, which must be repaid within one year 3 of 11 examples of short term finance(2) overdraft facility/ trade credit 4 of 11 Long term finance sources of finance tend to be for larger amounts of money that are needed for longer periods of timr 5 of 11 overdraft when a bank allows a business to withdraw more money than its has in its account and pay it back later 6 of 11 trade credit when a business recieves good from supplier immediantly but agrees to pay for them later 7 of 11 Advantage of trade credit a business receives payment from customers, before paying suppliers, removing the need to raise its own finance 8 of 11 disadvantage of trade credit(3) Not all suppliers offers trade credit; suppliers might charge a higher selling price. New business may not be offered trade credit until financial. 9 of 11 overdraft advantage(2) Quick, Convenient flexible; interest paid only on the amount of money borrowed and for the amount of time its is borrowed. 10 of 11 Disadvantage overdraft High, variable rates of interest; a bank may not grant the facility and can remove it at any time. 11 of 11
Comments
No comments have yet been made