wjeceduqas asa level year 1 business student guide 1 business opportunities
wjeceduqas asa level year 1 business student guide 2 business functions
wjeceduqas a level year 2 business student
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Operations management
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Written for
A/AS Level
WJEC
Business Studies
Component 1 - Business Opportunities
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Business finance
Sources of finance:
Short term Medium term Long term
(within a year) (1-5 years) (5 years onwards)
Internal sources Retained profits Retained profits Owners own capital
Selling assets
External sources Overdrafts Bank loans Bank loans
Venture capitalists Venture capitalists Debentures
Leasing Crowd funding Loans from family
Grants Leasing and friends
Trade credit Grants Peer to peer funding
Debt factoring Crowd funding
Leasing
Grants
Share capital
Source of finance Term Advantages Disadvantages
Owners own capital Long Quick and May not
(internal source) convenient have enough
No interest savings
payments to May need it
make for personal
use
Risk of losing
your own
money
Retained profits Medium Quick and Risk of losing
(internal source) convenient your profits
Easy access
to money
No interest
Selling assets Short Can create Might not
(internal source) space get the full
Can be quick market value
Can raise of the asset
money from Might need
equipment the asset in
the future
Loans from family Long Money may May want a
and friends not need to stake in the
(external source) be paid back business
Low interest Arguments
may occur
between
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