IGCSE Business studies _Chapter 21 " Business finance: Needs and sources " |
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Points explained in this chapter
5.1.1 The need for business finance: • The main reasons why businesses need finance, e.g. start-up capital, capital for expansion and additional working capital • Understand the difference between short-term and long-term financial needs 5.1.2 The main sources of capital: • Internal sources and external sources with examples • Short-term and long-term sources with examples, e.g. debt or equity for long-term finance • Importance of micro-finance in developing economies • The main factors considered in making the financial choice, e.g. size and legal form of business, the amount required, length of time, existing loans • Recommend and justify appropriate source(s) of finance in given circumstances |