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Sources and methods of finance
Internal
Owners capital
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Owners capital
is the money the owner invests in the business often from their
personal savings
Sole traders and
partnerships
are usually to use this source of finance as
small
business don’t need a
large
sum of money
Advantages is that it is
easy
to
access
and doesnt need
paying
back
Disadvantages- amount of
finance
that can be raised is limited as it depends on the
personal
wealth of the owners