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Edexcel IGCSE Business Studies 3.1.2 Internal sources of finance

Practise recognising personal savings, retained profit and selling assets, then explain their effects on business finance decisions.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • distinguish internal finance from loans, overdrafts, venture capital and crowdfunding
  • explain a disadvantage of using retained profit or personal savings in a business context
  • analyse how using internal finance can support expansion without borrowing costs

3.1.2 Internal sources of finance question 1

[Maximum number: 1]

Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify Studio's aim is to have 'a communal art space where people can come together and paint, where people would be given as much creative freedom as they would have if they were in their own spaces.'

Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can purchase art materials after attending the studio.

Artify Studio is a profit-making organisation with a social element. It employs seven part-time people, all of whom are art enthusiasts.

Which one of the following is an internal source of finance?

Select one answer.

A

Overdraft

B

Selling assets

C

Venture capital

D

Crowdfunding

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