Ownership and Finance for Expansion Flashcards

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What is internal finance for expansion?

Money raised from within the business, such as retained profit or selling assets.

Money raised from outside the business, such as bank loans, new shares, or venture capital.

Profit kept in the business instead of paid out; it can fund growth without interest.

Selling items the business no longer needs, such as old machines, to get cash for expansion.

Owners only lose the money they invested; personal belongings are not at risk.

To raise money by selling shares and to gain limited liability.

Money raised by selling shares. Private and public limited companies (Ltds and PLCs) can do this.

A set sum borrowed for a set time, repaid with interest; it may require security.

Money invested by specialists in return for shares and some control.

Raising small amounts from many people online, often for a reward or shares.

It is short term and costly, so it suits cash flow gaps, not big projects.

Cost (interest or dividends) and control (how ownership may be diluted).