2.1 - Raising Finance
2.1.1 - Internal Finance
a) Owner’s capital: personal savings b) Retained profit c) Sale of assets 2.1.2 - External Finance
a) Sources of finance:
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The Sources of Finance videos below explain the most common methods used by small businesses to finance themselves. The video directly below looks at some scenarios and asks you to decide which source of finance would be most appropriate in each case. (please bear in mind that these 2 videos have GCSE level content and are only an introduction. Your textbook has far more detailed information)
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2.1.3 - Liability
a) Implications of limited and unlimited liability b) Finance appropriate for limited and unlimited liability businesses |
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2.1.4 - Financial Planning
a) Relevance of a business plan in obtaining finance
b) Interpretation of a simple cash-flow forecast and calculations based on changes in the cash-flow variables
c) Use and limitations of a cash-flow forecast
a) Relevance of a business plan in obtaining finance
b) Interpretation of a simple cash-flow forecast and calculations based on changes in the cash-flow variables
c) Use and limitations of a cash-flow forecast