Page 431 - Cambridge IGCSE Business Studies
P. 431
IGCSE Business Studies Student CD-ROM
Section 5 – Mind maps
19 Business finance: needs and sources
Why businesses need finance
Why businesses
need finance
To replace worn out
To pay day-to-day or obsolete To invest in new To finance To finance research
Start-up capital and development
business expenses non-current assets technologies expansion plans into new products
such as machinery
Sources of finance
Sole traders and
Owner’s savings partnerships
Profit left after paying
Retained profit
taxes and dividends
Unwanted non-current
assets
Sale of non-current
Internal
assets
Sale and lease back of
non-current assets
Cash balances
Using some of the Reducing inventories
working capital
Reducing trade
receivables
Sources of finance
Overdraft
Short term Trade credit
Debt factoring
External Bank loan
Hire purchase
Leasing
Long term
Mortgage
Debenture
Share issue
© Cambridge University Press 2014 IGCSE Business Studies Section 5 – Mind maps 1
