Source of finance
All business need money. Where the money comes (камз) from is known as source (соурс) of finance. The business need finance in order to starting (стартинг) up, growing(гровинг) and for other situation. The amount (эмаунт) of finance that is available (аваилабле) will depends (депедс) on the type of business. The stage (стейдж) of development of the business and tha state (стате) of the economy. This essay will///
Finance for business comes (камз) from 2 main sources(сорсис). Firs one is inside (инсайд) the business: known as internal (интернал) sources of finince. Second one is outside (аутсайд) the business: known as external (экстернал) sources of finince. Internal (интернал) sources of finance include, Personal savings (сейвингс) : This is most often an option (оптион) for small businesses where the owner (оунер) has some savings (сейвингс) available (авайлабл)to use as they (зей) wish(вищ).
Retained (ретайнед) profit (профит): This is profit already (олрейди) made that has been set aside (асайд) to reinvest (реинвест) in the business. It could be used for new machinery (мачинари) , marketing (маркетинг) and advertising (адвертайзинг) or a new IT system.(систем) The advantage of reinvestment (реинвестмент) profit is that it does not have an associated (ассщсифтед) cost (кост). The disadvantage is that it may be limited (лимитид) so will constain (констайн) the rate (рате) of business expansion (експансион). Working capital (капитал): This is short-term money that is reserved(резервд) for day-to-day expenses (експенсис) such as salaries(салариес), rent,(рент) bills(биллз) and invoice (инвойс) payments (пейментс) . This has the advantage of reducing (редьюсинг) the amount (амоунт) that needs to be borrowed (борроувд). Sales of assets(ассетс): There may be surplus (сурплус) fixed (фиксд) assets, such as buildings (буилдингс) and machinery (мачинари) that could be sold to generate (дженерате) money for new areas (ареаз)....