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Source of funds: External sources of finance AO2

AO2 You need to be able to: Demonstrate application and analysis of knowledge and understanding Command Terms: These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate: Analyse, Apply, Comment, Demonstrate, Distinguish, Explain, Interpret, Suggest

The syllabus lists these as important for you to know:
  • share capital (Equity Finance)
  • loan capital (Long term bank loans)
  • overdrafts
  • trade credit
  • grants
  • subsidies (Gvt aid)
  • debt factoring
  • leasing
  • venture capital
  • business angels
The syllabus also requires you to know about short term, medium term and long term sources (but not in detail so AO1)
AO1 You need to be able to: Demonstrate knowledge and understanding. Command terms: These terms require students to learn and comprehend the meaning of information. Define, Describe, Outline, State

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