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IGCSE Business studies _Chapter 21 » Business finance: Needs and sources «



Points explained in this chapter

5.1.1 The need for business finance:
• The main reasons why businesses need finance, e.g. start-up capital, capital for expansion and additional working capital
• Understand the difference between short-term and long-term financial needs
5.1.2 The main sources of capital:
• Internal sources and external sources with examples
• Short-term and long-term sources with examples, e.g. debt or equity for long-term finance
• Importance of micro-finance in developing economies
• The main factors considered in making the financial choice, e.g. size and legal form of
business, the amount required, length of time, existing loans
• Recommend and justify appropriate source(s) of finance in given circumstances

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