Learning objectives
Distinguish capital expenditure from revenue expenditure and explain why a firm needs finance for start-up, for working capital and for growth
Compare the internal sources of finance — personal funds, retained profit and the sale of assets — in terms of cost, speed and the control the owners give up
Compare the external sources of finance named in the syllabus — share capital, loan capital, overdrafts, trade credit, crowdfunding, leasing, microfinance providers and business angels
Distinguish short-term from long-term finance and select an appropriate source for a stated purpose, justifying the choice against the firm's legal form, size and existing borrowing
Evaluate the consequences for a firm of funding an expansion with debt rather than with equity
Continue with a revision plan
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