• Sources of Finnance
    * Government Grants * Bank Loan * This is money borrowed at an agreed rate of interest over a set period of time. * This is a medium or long-term source of finance. Advantages * Set repayments are spread over a period of time which is good for budgeting. Disadvantages * Can be...
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  • Pepsico
    way of short term finance. Purposes such as working capital, production expenses for the goods that are ordered by the customer bank loan can be a good source for financing. |Advantages |Disadvantages...
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  • Mr Wagdi
    survival of large businesses) this source can’t be appropriate for this business because it’s only a small business. Advantage: Grants are basically free money Disadvantage: not be available for every type of business 2.2 inappropriate external sources: -shares (also known as equity finance, can...
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  • Study Guide
    Repair |Objective |What to Study | |Recognize the advantages and disadvantages of |Ch. 5 of Personal Finance...
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  • Sources of Finance
    . ✓ These are useful as they do not attract any interest charge ✓ It is helpful when the business has been up and running for a while and wishes to expand and needs a cheap source of financing. There are some disadvantages to relying on internal sources of finance. ➢ For example...
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  • Finace
    is received it is deposited in a bank account controlled by the invoice discounter. The invoice discounter will then pay the remainder of the invoice less any charges to the client. 4.0 Advantages and Disadvantages of the different sources of finance 4.1 Personal savings Advantages * The...
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  • How to Have a Good Sex
    / Judgment………………………………………………………… 1.4 Personal savings ………………………………………………………………………. 1.5.10 Definition …………………………………………………………………… 1.5.11 Advantage and disadvantage ………………………………………………. 2.0 External Source of Finance 2.1 Short term Source of finance...
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  • Harlo
    , trade credit is also a short term source. This is where your suppliers give you time to pay back what you owe them. An advantage of this is that you don’t need to pay for your goods immediately and you have time to sell your products before you need to pay for them. A disadvantage of this is that...
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  • sources of finance
    business. Advantages: - Quickly available - No interest will need to be paid Disadvantages - The owner might not have enough savings - It’s very risky due to unlimited liability Decision-Making Freedom When a business finances its activities internally, they are not accountable to any outside...
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  • Sources of Finance
    … So every company always look for different sources of finance that can help them maintain and develop the businesses. There are various sources of finance that the companies need to consider in particular cases. Each source has it own advantage and disadvantage and different source will be more...
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  • Acca F9
    ) • Interest Rate FRA • Interest Rate Futures • Interest Rate Options • Interest Rate Swaps BUSINESS FINANCE/SOURCES OF FINANCE 1) Factors to be considered when choosing between Debt and Equity 2) Advantages and disadvantages of short term finance: Bank Overdraft, Short term Loan Operating Lease. 3...
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  • Sources of Finance
     Source of finance Match the source with advantages and disadvantages State if advantage/disadvnatage ordinary share capital: money given to a company by shareholders in return for a share certificate, which gives them part ownership of the company and entitles them to a share of the profits...
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  • Sources of Finance
    risk and invest in them. Savings are a good source of finance for a business, as interest does not need to be paid to someone else while the money is being used, and the business remains totally in the control of the owner. In any business venture it is always an advantage to be using your own...
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  • sources of finances used by businesses
    quick response was needed Smithy Joinery would struggle to adapt. Analysis of Share/equity capital for smithy joinery Share/equity is by far the main source of finance that smithy joinery uses; there are many great advantages with some disadvantages as well. The greatest advantage of having shares...
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  • Business Work
    short term and also internal and external sources of finance. Furthermore, the legal, financial and ownership implications for each source of finance will be assessed in relation to this company. Finally one will evaluate the advantages and disadvantages and overall suitability for purpose for each...
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  • assesment
    Overdraft 5. Finance leasing 6. Sell of assets P2 1.2 Assess the implications of different sources finance (e.g. - equity financing and debt financing) for Blue Mountain Solutions including their relative advantages and disadvantages. [Guidance - example of...
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  • Managing Financial Resources and Decisions
    it can lead to bankruptcy if capital shortage is too large. 5. CONCLUSION: It can be said that each and every source of finance has both advantages and disadvantages. The aim is to make use of the advantages and also to avoid the disadvantages of all...
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  • Sources of Finance
    shareholders as dividends. These earnings also known as reserves and provide business as a much-needed capital. Advantage: * No interest will have to be paid. Disadvantage: * Not available for start up businesses. 11. Government Grants The government provides finance to companies in cash grants...
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  • Mr Joe
    fall due, therefore the uncertainty with the other sources is removed. DISADVANTAGES (LEASING) - Can be expensive - The asset belongs to the finance company. (LONG TERM LOAN) ADVANTAGES * Set repayments are spread over a period of time which is good for budgeting. (LONG TERM LOAN...
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  • Business Finance
    their business plan does not take into account the cost of electricity ,water and heating bills for this building when forecasting their annual profit sum, then the bank will not be likely to grant this external source of finance. 2. What are the advantages and disadvantages of raising funds from...
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