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Business

GCSE · Edexcel

QuestionsFlashcards

2.1 Growing the Business
2.2 Making Marketing Decisions
2.3 Making Operational Decisions
2.4 Making Financial Decisions
- Business Calculations
  6
- Understanding Business Performance
  8
2.5 Making Human Resource Decisions

3.1 The Exam Papers
- Paper 1: Investigating Small Business
  6
- Paper 2: Building a Business
  6
3.2 Business Exam Skills
3.3 Structuring Your Responses

Sources of Finance for Growing Businesses Flashcards

All 7 cards in this deck

Name the two internal sources of finance in this topic.: Retained profit and selling assets.
What is retained profit?: Profit kept in the business after tax and dividends, reinvested rather than paid out to owners.
Give one advantage of using retained profit to fund growth.: There is no interest to pay and no loss of control/ownership.
What does 'selling assets' mean as a source of finance?: Selling items the business owns but no longer needs, e.g. machinery or a building, to raise cash.
What is loan capital?: Money borrowed from a bank or lender that is repaid with interest over an agreed period.
What is share capital?: Money raised by selling shares in the business to investors, who become part-owners.
True or false? Raising finance by issuing shares means existing owners give up some control.: True. New shareholders gain ownership and voting rights.