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which is which internal an external (external (obtaining a loan or…
which is which internal an external
external
government grant
a sum of money given by the business to the goverment
hire purchase
an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment and repays the balance of the price of the asset plus interest over a period of time.
obtaining a loan or mortgage
loan
a sum of money that is expected to be paid back with interest
mortgage
a legal agreement by which a bank, building society
a new share issue
the process by which companies pass on new shares to shareholders
overdraft
a deficit in a bank account caused by drawing more money than the account holds.
family and friends
borrowing money from a family member or a fend
trade credit
Trade credit is the credit extended to you by suppliers who let you buy now and pay later
internal
retained profit
the profit kept in the company rather than paid out to shareholders as a dividend
owners funds
Owner's funds are provided by the owners of the business and are known as capital in the case of sole proprietor, partnership, limited liability partnership etc.
sales of unwanted assets
selling a piece of instrument that you don't need anymore