identification of sources_of_finance

Jun 27th, 2015
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Abilene Christian University
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SOURCES OF BUSINESS FINANCE Why is there a need for finance in a business?  Setting up  Expansion  Day to Day running Factors to consider before opting for a specific type of finance:  Size of the business  Purpose for which the finance is needed (e.g solving a short term cash flow problem will not require the same source of funding as for an expansion plan)  Amount required  Time scale (long term, medium term or short term) Difference between Capital Expenditure and Revenue Expenditure Capital Expenditure: Spending on the purchase of fixed assets Revenue Expenditure: Spending on the day to day running of a business

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Business & ManagementSources of FinanceSOURCES OF BUSINESS FINANCEWhy is there a need for finance in a business?Setting upExpansionDay to Day runningFactors to consider before opting for a specific type of finance:Size of the businessPurpose for which the finance is needed (e.g solving a short term cash flow problem will notrequire the same source of funding as for an expansion plan)Amount requiredTime scale (long term, medium term or short term)Difference between Capital Expenditure and Revenue ExpenditureCapital Expenditure: Spending on the pur

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