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Writer's pictureMr Davies

Lesson 1.3.4 Sources of finance

Updated: Jun 12, 2020

Sources of finance for a start-up or established small business: ● short-term sources: overdraft and trade credit ● long-term sources: personal savings, venture capital, share capital, loans, retained profit and crowd funding.


Discover


One example to consider is


Delve



Demonstrate Question


This question is a analyse question. You MUST use the BLT format still however this time you will need two impacts or points with BLT. An example is below for a different discuss question. The structure of your answer should match the example.


Discuss the impact on a business of changes in consumer wants. (6 marks).


One impact is a business will have to carry out more market research

This is because they will need to know what these consumer changes are

This leads to designing products more inline with the consumer needs

Therefore keeping existing and new consumers attracted to the business


Another impact is a business will to adapt existing products

This is because they will be more in line with consumer wants

This leads to higher costs in development of current products

Therefore a reduction in profit for the business


BE EXCELLENT - Remember to get into the top band of marks for an Analyse question you MUST refer to case study in your answer

Have a go at your own


Analyse the impact on Meringue of using a bank loan to pay for the contactless payment system.

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