Long-term sources of finance (Edexcel GCSE Business): Flashcards
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How long is long-term finance?
How long is long-term finance?
Over one year
Benefit of using personal savings
Benefit of using personal savings
Gives owner complete control
Personal savings limitation
Personal savings limitation
Limited to owner's personal funds
What venture capitalists receive
What venture capitalists receive
Ownership stake in company
What type of businesses attract venture capitalists?
What type of businesses attract venture capitalists?
High-growth potential businesses
Share capital definition
Share capital definition
Selling ownership stakes (equity) to investors
What shareholders receive from profits
What shareholders receive from profits
Dividends
Loan repayment terms
Loan repayment terms
Repaid over several years with interest
Retained profit definition
Retained profit definition
Reinvesting earnings back into company
Retained profit advantage
Retained profit advantage
No debt or giving up ownership
Crowd funding definition
Crowd funding definition
Small amounts from many people for business idea
Can sole traders sell shares?
Can sole traders sell shares?
No - they don't have shareholders