Sources of Finance (Leaving Cert Business): Flashcards
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Golden rule of business finance
Golden rule of business finance
Match finance term to asset life
Short-term finance duration
Short-term finance duration
0-1 year
Medium-term finance duration
Medium-term finance duration
1-5 years
Long-term finance duration
Long-term finance duration
Over 5 years
Typical uses of short-term finance
Typical uses of short-term finance
Wages, utilities, rent
Typical uses of medium-term finance
Typical uses of medium-term finance
Vehicles, equipment, machinery
Typical uses of long-term finance
Typical uses of long-term finance
Buildings, premises, major equipment
Key advantage of grants
Key advantage of grants
Don't need to be repaid
Who owns asset in leasing
Who owns asset in leasing
Leasing company
When ownership gained in hire purchase
When ownership gained in hire purchase
After final payment