2.1.1 INTERNAL FINANCE

• Economic variables

  Features of an economy which have effects on business and consumers e.g unemployment, inflation and exchange rates
• Internal finance

  • The raising of capital/cash from within/inside the business e.g business/owner's capital, personal savings, retained profit
  • The raising of captial/cash from within/inside the business
• Personal savings/owners ’ capital

  A source of (internal) finance provided by the owner of a business/personal money from the owner
• Retained profit

  Profit is re-invested back into/kept by the business which is not paid as a dividend. It is an internal source of finance
• Sale of assets

  A type of internal finance, involves selling resources that belong to the business