Understanding Business Funding (Grade 11 NSC Matric Business Studies): Flashcards
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Business funding
Business funding
Financial resources needed to start, run & grow operations
Start-up costs
Start-up costs
Initial investment to get business off the ground
Operational expenses
Operational expenses
Ongoing costs to keep business running smoothly
Bank overdraft
Bank overdraft
Allows withdrawing more money than deposited in account
Trade credit typical payment period
Trade credit typical payment period
1 to 3 months to settle debts
Equity capital
Equity capital
Money business owners invest in their own companies
Government grants main advantage
Government grants main advantage
Don't need to be repaid
Venture capital
Venture capital
External investors fund start-ups for ownership share
Solvency
Solvency
Ability to meet financial obligations
New businesses & funding
New businesses & funding
Face greater difficulty obtaining funding than established ones