Sources of finance
Введено| English | Значение |
|---|---|
| retained profit/rɪˈteɪnd ˈprɒfɪt/ | нераспределённая прибыль |
| interest/ˈɪntrest/ | процент |
| share issues/ʃeə ˈɪʃuːz/ | эмиссия акций |
| grants/ɡrænts/ | субсидии |
| trade credit/treɪd ˈkredɪt/ | торговый кредит |
| overdrafts/ˈəʊvədræfts/ | овердрафт |
| mortgages/ˈmɔːɡɪdʒɪz/ | ипотечное кредитование |
| debt/det/ | долг |
| equity/ˈekwɪti/ | собственный капитал |
| diluted/daɪˈluːtɪd/ | размытие (доли) |
Where the money comes from
- Needing finance is one thing; getting it is another. A start-up and a global plc have very different options.
- The right source depends on the amount, the purpose, and the cost.
Sources of finance lab
Choose the best type of finance by time, risk and ownership.
Which is an internal source of finance?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Retained profit comes from within the business.
Internal vs external
- Internal sources: retained profit 留存利润, selling assets, tighter working capital. No interest 利息, no loss of control.
- External sources: from outside the business — loans, share issues 发行股票, grants 补助金, trade credit 商业信用.
Sources of finance are internal or external
Which is a short-term source of finance?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Overdrafts and trade credit are short-term.
A long-term asset should be funded with a ______-term source of finance.
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Match the term of finance to the purpose.
Short-term vs long-term
- Short-term: overdrafts 透支, trade credit — for day-to-day cash needs.
- Long-term: bank loans, mortgages 抵押贷款, share issues — for big, lasting investments.
Banks are a key external source of finance, through loans and overdrafts
A drawback of raising finance by issuing shares (equity) is that it:
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Equity dilutes ownership and control, though it needs no repayment.
A bank loan (debt) must be repaid with interest, but lets owners keep control.
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Debt keeps control but adds a repayment obligation.
Debt 债务 vs equity 所有者权益
- Debt (loans): must be repaid with interest, but the owners keep control.
- Equity (selling shares): no repayment, but ownership and control are diluted 稀释.
Match the source to the need. Funding a long-term asset with a short-term overdraft is dangerous; financing daily wages with a 20-year loan is wasteful. The source's term should fit the purpose.
You've got it
- internal sources (retained profit) cost nothing extra; external sources come from outside
- short-term (overdraft, trade credit) vs long-term (loans, shares)
- debt keeps control but needs repaying; equity needs no repayment but dilutes control
Write from retained profit of 25000
- A firm can fund a project with 25000 of retained profit or with a loan of the same amount.
- Say what the retained profit does not require.
A firm needs 25000. It can use retained profit or borrow 25000. What extra cash cost does the retained profit avoid, and what does a new share issue do to control?
Internal profit is already the firm's money.
What extra repayment does retained profit of 25000 require?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Retained profit is an internal source.