3.1 Sources of Finance

IB Business and Management

Key terms

InternalExternalShort, medium and long term

Key question – when and how do we get funds, depending on the situation?

You will understand the main sources of finance and be able to assess which to use and when

Objective

Discuss the question

At what points in the life of a business is additional capital needed?

Why do we need money?

Categorising business finance – grp tsk

Capital expenditure

Revenue expenditure

Internal and external sources

Write what you believe is the definition of each term

Research and check your definition against one online

Using the first sheet on the Wiki: 5 minutes to list all the internal and external sources of finance available and indicate if they are short, medium or long term

In your table group, work to complete the 2nd work sheet

To end

IB exam question 1 and