 |
 |
     |
Finance - Sources of financeExplanationBusinesses essentially need finance for the short-term and the long-term. The way in which they may raise these funds will differ a great deal and in this section we start to look at the different sources and what area of business activity they may be useful for. Two key sources of finance are internal sources and external sources. 'Internal sources' refers to money they can raise from within the firm. This may include profit, or perhaps better management of existing resources. External sources means raising money from outside the firm. In many cases this will mean turning to the banks, but it may also be that the firm tries to issue more shares on the stock market or perhaps sells debentures to raise money. For more detail on all these methods of raising finance, why not have a look at the theory section. |
||||||
