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Economics FROM 4 ART

CHAPTER 3 :BUSINESS UNIT(ORGANISATION)

SOURCES OF FINANCE

Internal Sources

  • Personal savings from promoters. Those are individual s past saving of promoters for the past years capital contributed by shareholders.
  • Re-investing profit. These are part of undistributed profits put back into the business to increase capital

External sources

  • Trade credit
  • Leasing: it is the agreement blue the owner of property allow his property to be used by another person for a specific amount to be paid at an agreed period.
  • Hire purchase.
par Claude Foumtum