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Business Structures and Sources of Finance - Coggle Diagram
Business Structures and Sources of Finance
Sources of Finance
Sources of finance are ways in which a business can raise funds to set up, run or expand their business
Long term finance
Can be paid back over many years
Short term finance
Must be paid back within a year
Internal Sources
Funds found inside the business
Retained Profit
Sales of assets
Owner Capital
External Sources
Funds found outside the business
Share Capital
Bank Loan
Trade Credit
Government Grants
Overdraft
Business Structures
Not For Profit
Improve the local environment
Operate ethically
Support a social cause
Increase staff morale
Profit
Increase market share
Lower costs
Increases returns to shareholders/owners
Make a profit