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SOURCES OF FINANCE- RESEARCH PROJECT Firms sometimes need to raise finance for Working Capital and Capital Expenditure. Explain what each is and give examples.
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SOURCES OF FINANCE- RESEARCH PROJECT Firms sometimes need to raise finance for Working Capital and Capital Expenditure. Explain what each is and give examples. * Working Capital (or Revenue Expenditure) The working capital is made up of the current assets net of the current liabilities. It is vital to a business to have sufficient working capital to meet all its requirements. Many businesses have gone under, not because they were unprofitable, but because they suffered from shortages of working capital. * Capital Expenditure Used for buying fixed assets where large sums of money are involved but they are not purchased often e.g. new premises. List and explain factors that determine how much and what type of finance a business might need. * Size of the Business. * Type of the Business. * Where the business is in terms of its development. * Whether it is a profitable business. Define the following terms in your own words * Internal Finance Internal Finance can be profit...
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