GCSE Business (OCR)

Topic Summaries

Business objectives

Sources of finance for growing businesses

Source Internal/External Description
Retained profit Internal Profit kept in the business for reinvestment
Selling assets Internal Selling unused equipment, buildings, etc.
Loan capital External Borrowing money from a bank, with interest
Share capital External Selling shares to investors (Ltd or PLC)
Market flotation External Public can buy shares on the stock market

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