3.1 Sources of Finance
IB Business and Management
Key terms
InternalExternalShort, medium and long term
Key question – when and how do we get funds, depending on the situation?
You will understand the main sources of finance and be able to assess which to use and when
Objective
Discuss the question
At what points in the life of a business is additional capital needed?
Why do we need money?
Categorising business finance – grp tsk
Capital expenditure
Revenue expenditure
Internal and external sources
Write what you believe is the definition of each term
Research and check your definition against one online
Using the first sheet on the Wiki: 5 minutes to list all the internal and external sources of finance available and indicate if they are short, medium or long term
In your table group, work to complete the 2nd work sheet
To end
IB exam question 1 and