Business Studies Finance Revision

January 28, 2017
A293 - Complete Student

A creditor is someone or business who has lent funds to a small business and is owed cash. A debtor is a person or company who may have lent funds from a small business and so owes it money.

There's an expense in borrowing funds. Cash lent from is repaid eventually, typically with an extra payment interesting. Interest may be the price of borrowing from the bank as well as the reward for lending.

Creditors frequently ask for protection before providing resources. This means sole dealers and partners might have to offer unique household as an assurance that monies would be paid back. An organization could offer assets, eg workplaces as collateral.

The sort of finance opted for is determined by the kind of business. Start ups and tiny corporations are thought quite high risk in order to find challenging to raise additional finance. The sole way to obtain resources might-be the dog owner's very own savings, retained profits and borrowing from buddies. Companies can issue additional shares to increase large amounts of money in a rights problem.

Source: www.bbc.co.uk
RELATED VIDEO
Unit 2a Finance Revision Screen Cast.wmv
Unit 2a Finance Revision Screen Cast.wmv
Bee Business Bee AQA BUSS2 Formulas for Revision Presentation
Bee Business Bee AQA BUSS2 Formulas for Revision Presentation
Business Studies - Sources of Finance: Business Exam Tips
Business Studies - Sources of Finance: Business Exam Tips
RELATED FACTS
Share this Post