• 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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  • 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
    Sources of finance What are the main sources and finance for UK firms and why? All firms need some kind of financing. Access to finance may differ considerably from firm to firm depending on what type of business they are and how big/known they are; Sole Trader, Public Limited or Private...
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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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • p1 task 3
    overdraft limit. Another disadvantage is that overdrafts may need to be secured against your business assets, which put them at risk if you cannot meet repayments. Furthermore, an advantage of having an overdraft is that it allows you to take out the money what you want, therefore your cash flow...
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  • Dividend Policy of Large Publicly-Traded Company: Tesco
    1. Introduction What is Dividend? What are the Dividend Policies for? How they work and what are their advantages and disadvantages? Let’s find the answers to these simple questions and after we have them, let’s determine and...
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  • Btec
    of interest of about the same but its credit management and administrative charges are lower than a factors because only finance is provided and sales ledger is not maintained by an invoice discounting firm. Page | 12 4.0 Advantages and Disadvantages of the different sources of finance 4.1...
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  • Financial Management Assignment
    : What is expected within students’ answers Ability to introduce the report, by including assignment objectives, companies selected and financial statements obtained. The description, advantages, disadvantages and contrasts of each Source of Finance should demonstrate a clear understanding of the...
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  • Dvsv
    ://www.bized.co.uk/virtual/bank/business/finance/sources/theories1.htm (accessed 27 July 2010). Editor. 2010. Venture Capital. [Online]. (Updated 11 July 2010) Available at: http://en.wikipedia.org/wiki/Venture_capital [accessed 27 July 2010]. Editor. 2010. What are the Advantages and Disadvantages of...
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  • Sources of Finance
    Advantages: • No interest or charges to pay • Total control over what you do with it Disadvantages: • Once used may have no other finances reserves for emergencies • Limited to what has been saved • Risk is entirely your own External Sources of Finance Definition: finances raised from...
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  • Prelim Business Notes
    funds contributed by the business owner to start business if company referred to as shareholder equity advantages does not have to be paid unless owners leave business no interest payments Disadvantages low profit low returns Cost of finance Debt...
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