Business BTEC Unit 3 - Aim D Test Quetions
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Practice questions for this set
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Money owned by the owner after assets are sold and creditors are
paid
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1 What is retained profit? 2 Pros of retained profit
3 Cons of hire purchase What is owners capital?
Don't know?
Terms in this set (51)
, 1. Retained profit
Internal sources of
2. Net current assets
business finance
3. Sale of assets
1. Owner's capital
2. Loans
3. Crowd funding
4. Mortgage
5. Venture capital
6. Debt factoring
External sources of
7. Hire purchase
business finance
8. Leasing
9. Trade credit
10. Grants
11. Donations
12. Peer to peer lending
13. Invoice discounting
What is retained Profit that can be taken out of the business or
profit? reinvested in it, by the owner
- no interest charged
- doesn't need to be repaid
- no loss of ownership
Pros of retained profit
- available immediately
- only available up to the amount the business
has, help avoid debt
- amount available may be limited
- reduce payments to shareholder, which can
Cons of retained
cause dissatisfaction
profit
- once used, it is not available for alternative
purposes
Money immediately available to the business
Net current assets Current assets owned by the business can be
turned into cash
With Correct Answers Latest Updated
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Money owned by the owner after assets are sold and creditors are
paid
Give this one a try later!
1 What is retained profit? 2 Pros of retained profit
3 Cons of hire purchase What is owners capital?
Don't know?
Terms in this set (51)
, 1. Retained profit
Internal sources of
2. Net current assets
business finance
3. Sale of assets
1. Owner's capital
2. Loans
3. Crowd funding
4. Mortgage
5. Venture capital
6. Debt factoring
External sources of
7. Hire purchase
business finance
8. Leasing
9. Trade credit
10. Grants
11. Donations
12. Peer to peer lending
13. Invoice discounting
What is retained Profit that can be taken out of the business or
profit? reinvested in it, by the owner
- no interest charged
- doesn't need to be repaid
- no loss of ownership
Pros of retained profit
- available immediately
- only available up to the amount the business
has, help avoid debt
- amount available may be limited
- reduce payments to shareholder, which can
Cons of retained
cause dissatisfaction
profit
- once used, it is not available for alternative
purposes
Money immediately available to the business
Net current assets Current assets owned by the business can be
turned into cash
