Edexcel A Level Business Unit 2.1 Raising Finance 4 lesson BUNDLE

2.1.1
Internal finance
a) Owner’s capital: personal savings
b) Retained profit
c) Sale of assets
2.1.2
External finance
a) Sources of finance:
o family and friends
o banks
o peer-to-peer funding
o business angels
o crowd funding
o other businesses
b) Methods of finance:
o loans
o share capital
o venture capital
o overdrafts
o leasing
o trade credit
o grants
2.1.3
Liability
a) Implications of limited and unlimited liability
b) Finance appropriate for limited and unlimited liability
businesses
2.1.4
Planning
a) Relevance of a business plan in obtaining finance
b) Interpretation of a simple cash-flow forecast and
calculations based on changes in the cash-flow variables
c) Use and limitations of a cash-flow forecast