Chapter 24, Sources of Finance Flashcards

1
Q

Working Capital

A

short-term finance required for the day to day running of a business

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2
Q

Cashflow

A

a business needs sufficient inflows and of cash to finance its day to day outgoings

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3
Q

Short-Term finance

A

needed for day to day running of a business

  • Overdraft
  • Loan
  • Trade Credit
  • Factoring
  • Hire-Purchase
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4
Q

Medium-Term Finance

A

a period between three and ten years

  • Medium term loan
  • Leasing
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5
Q

Long-term Finance

A

excess of ten years

  • Lomg- term loans
  • Debentures
  • Issue of Shares
  • Sales and leaseback
  • Retained profit
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6
Q

Stock Market

A

a market where shares and debentures are bought and sold only public companies have their shares traded on the stock market

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7
Q

Other sources of finance

A
  • Government assistant
  • Depreciation
  • Venture capital and business angles
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8
Q

Venture Capital

A

finance from individuals or firms who lend money to, or buy shares in, small and medium-size businesses that required finance for standing up

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