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1.3.4 Sources of business finance - Match-up

Match-up definitions and answers with key terms and examples. Press submit to check your answers.

Short-term finance
Long-term finance
Overdraft
Trade credit
Personal savings
Retained profit
Loans
Share capital
Venture capital
Crowdfunding


Answers
Finance for immediate needs, usually repayable within about three months.
Supplier allows paying invoices later, improving cash flow for stock purchases.
Borrowed money repaid over set term, with interest and possible collateral.
Owner uses own money to fund business, retaining full control.
Using past profits to finance business, avoiding dilution of ownership.
Private investors provide funds and expertise in exchange for equity.
Finance for investments lasting years, like equipment, buildings, or expansion.
Raising small amounts from many people, often via online platforms.
Money raised by selling shares, giving investors ownership and dividend rights.
Bank allows withdrawing more than account balance, charging fees and interest.
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