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Business studies sources of finance
Member rating: No Rating | Words: | Submitted: Mon Dec 11 2006
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Sources of finance The Main Sources of finance available to a firm can be broken down into two main sections, Internal Sources and External sources. Internal Sources - Retained Profit -This source of finance is linked with the profit left in the business at the end of the accounting period after all deductions and appropriations have been made, such as paying tax. This is a very useful source of finance it is used to invest within the business to expand and diversify as it holds no risks it is a widely used financial source, in the long run it is very posative for the business because reinvesting into th efirm means share rpices will rise. However this can only be produced per anum or monthly. Working Captial - Working capital is the amount of money that a company has tied up in funding its day to day operations for example without the value of its...
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