1. What does the term âsources of financeâ describe for a business?
2. A company earns a profit and keeps it in the business rather than distributing it. What is this source of finance called?
3. A start-up receives investment from experienced business investors who also advise and monitor its progress. Which source of finance is it using?
What are sources of finance for a business?
Ways money comes into a business.
What is retained profit?
Profit kept in the business instead of being distributed.
What is venture capital?
Investment in a business by investors who may also provide advice and monitoring.
What is trade credit?
A short-term source of finance that lets a business obtain goods or services now and pay suppliers later.
What is a cash flow forecast?
An educated prediction of a business's future cash flow.
How is net cash flow calculated?
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