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Emma ArmstrongFinancial Booklet
EMMA ARMSTRONG
BUSINESS ACCOUNTING-PASS 4
FINANCIAL BOOKLET
, Emma Armstrong
WHAT IS INTERNAL AND EXTERNAL SOURCES OF FINANCE?
INTERNAL SOURCES OF FINANCE
INTERNAL SOURCES OF FINANCE - WHEN FUNDS THAT COME FROM INSIDE OF THE
BUSINESS/ORGANISATION SUCH AS CASH FROM SALES, SALE OF ASSETS AND PROFITS YOU HOLD
BACK TO FINANCE EXPANSION.
EXTERNAL SOURCES OF FINANCE
EXTERNAL SOURCES OF FINANCE – EXTERNAL SOURCE OF FINANCE IS CAPITAL WHICH
INCLUDES, LOANS, VENTURE CAPITAL, LEASING, HIRE PURCHASE, TRADE CREDIT, OVERDRAFT
AND MUCH MORE.
RETAINED PROFITS
WHAT IS RETAINED PROFITS?
RETAINED PROFIT IS THE PROFIT THAT THE COMPANY KEEP INSTEAD OF PAYING OUT TO
SHAREHOLDERS.
AS YOUR BUSINESS IS ONLY GETTING OFF THE GROUND YOU WILL NEED TO BE INFORMED IN
ANY WAY POSSIBLE. RETAINED PROFITS IS VERY IMPORTANT FOR YOUR COMPANY’S FUTURE,
BECAUSE IF YOUR DID NOT HAVE AN UNDERSTANDING OF RETAINED PROFIT, THEN YOUR
COMPANY WOULDN’T BENEFIT AS MOST MONEY WILL BE PAID OUT TO SHAREHOLDERS.
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