Theme 2: Sources of Finance

The portion of a company's profits that is not distributed as dividends but kept for future use.

Process of selling resources of value owned by a business to free up capital.

Personal assets of the business owner used as a source of finance.

Agreement with a bank allowing businesses to withdraw more money than available in their account.

Short-term financing from suppliers allowing businesses to buy now and pay later.

Money provided by the government to businesses without the need for repayment.

Renting equipment or machinery instead of purchasing outright.

Fixed-amount loans from banks used to finance long-term assets.

Private equity financing provided to startups with high growth potential.

Money invested in a company by shareholders to access large amounts of capital.

Collective effort of individuals pooling small amounts of capital to finance a business venture.