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2.1 Internal finance - Coggle Diagram
2.1 Internal finance
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Retained profits
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Disadvantages
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hoarding cash in the business - if the business does not achieve high profits, then shareholders may decide to have the cash for themselves
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Finance
Is the money that businesses need to start and to operate. Businesses need finance at different times and for a number of different reasons
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disadvantages
opportunity cost of using personal savings or retained profit that could have gained interest from a savings account
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