Sources of Finance
How do different forms of business ownership influence the availability of finance sources?
Different forms of business ownership, such as sole proprietorships, partnerships, and corporations, can influence the availability of finance sources by affecting factors like personal liability, access to capital markets, and eligibility for certain types of financing.
What are the internal sources of finance available to businesses?
Internal sources of finance available to businesses include retained earnings (profits reinvested in the business), depreciation funds (funds set aside from depreciation charges), working capital (funds generated from the business's operations), and sale of assets or investments. These sources are derived from within the business and do not require external borrowing or equity issuance.