The main sources of business financing abstract. Choosing a source of financing for a business project or development of an existing small business. Debt financing, types

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Total: 49 1-20 | 21-40 | 41-49

Establish a correspondence between the sources of business financing and types of sources: for each position given in the first column, select the corresponding position from the second column.

A	B	IN	G	D

Explanation.

Internal sources of financing - sources that the firm itself has.

A) net profit - internal sources of business financing.

B) bank credit - external sources of business financing.

C) depreciation deductions - internal sources of business financing.

D) extra-budgetary funds - external sources of business financing.

D) funds of the population - external sources of business financing.

Answer: 12122.

Answer: 12122

Valentin Ivanovich Kirichenko

Any money taken from the public.

1) Financing is a way of providing an enterprise with money.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners.

3) External financing of a business can be carried out by issuing shares of an enterprise.

4) External funding sources are sources of income Money, which are formed due to the results entrepreneurial activity enterprises.

5) The main external source of financing for the firm is its profit.

Explanation.

1) Financing is a way of providing an enterprise with money - yes, that's right.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners - yes, that's right.

3) External financing of a business can be carried out by issuing shares of an enterprise - yes, that's right.

4) External sources of financing - these are sources of cash receipts that are formed due to the results of the enterprise's entrepreneurial activities - no, that's not true.

5) The main external source of financing of the firm - its profit - no, not true.

Answer: 123.

Answer: 123

Valentin Ivanovich Kirichenko

NO. it is an external source.

Akirita Sahina 29.05.2017 21:33

Isn't profit the main source???

Valentin Ivanovich Kirichenko

It says external, profit - internal.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) A set of forms and methods financial support production of goods and services is called financing.

2) Many enterprises are interested in long-term borrowing.

3) When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out.

4) External sources of business financing include depreciation.

5) Attracting loans is considered as an internal source of business financing.

Explanation.

There are internal and external sources of cash flow.

Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Internal sources of financing include investments of the founders of the company in the authorized capital, as well as funds received after the sale of the company's property, receiving rent for renting out the property.

External sources are divided into two groups: debt financing and grant financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing is borrowed capital. Borrowed capital includes: short-term credits and loans; long-term credits and loans; accounts payable.

1) The totality of forms and methods of financial support for the production of goods and services is called financing - yes, that's right.

2) Many enterprises are interested in long-term borrowing - yes, that's right.

3) When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out - yes, that's right.

4) Depreciation deductions are referred to as external sources of business financing - no, that's not true.

5) Attracting loans is considered as an internal source of business financing - no, that's not true.

Answer: 123.

Stanislav Ivanov 06.04.2017 22:04

The answer is option #2. "Many enterprises are interested in long-term borrowing." Many enterprises (that is, the majority, that is, the vast majority) are interested in reaching self-sufficiency and using internal capital, but not living on loans. Some nonsense.

Valentin Ivanovich Kirichenko

In social science, there are many such questions because of the specifics of our subject. This question is from the KIM developers. this may well occur in a real exam .......

Anvar Tashtemirov 15.04.2017 18:12

5) is correct. Attracting loans refers to the internal source of business financing.

Valentin Ivanovich Kirichenko

No, external

(According to Z. Body, R. Merton)

Explanation.

1) Types of sources:

Domestic financing;

External funding.

Domestic funding:

1) retained earnings;

External funding:

Explanation.

1) guess, for example:

2) three organizations, for example:

Investment funds;

pension funds;

State.

Explanation.

The correct answer must contain the following elements:

Why is a large-scale expansion of the company's business not always economically feasible? Using text, social science knowledge and facts public life Give three explanations.

Read the text and complete tasks 21-24.

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings accrued but not paid wage. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For joint stock company, which occupies a stable position in its business and does not intend to significantly expand it with the involvement of significant funds, solutions for financial matters are accepted, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. Outside investors usually want to see detailed plans use of their funds, and also want to make sure that investment projects companies will provide cash receipts sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of sources of internal financing.

(According to Z. Body, R. Merton)

What sources of business financing are indicated in the text? Specify two types. Based on the text, give two examples for each of them.

Explanation.

The correct answer must include the following items:

1) Types of sources:

Domestic financing;

External funding.

2) Two examples are given for each:

Domestic funding:

1) retained earnings;

2) accrued but not paid wages;

External funding:

1) funds of creditors and shareholders;

2) funds from the issue of bonds or shares.

Sources of internal and/or external funding may be specified in other formulations that are similar in meaning.

Based on social science knowledge, explain the meaning of the concept of "entrepreneurship". What are the two directions financial policy a joint-stock company that does not plan a significant expansion of production are named in the text? What is the essential difference between the use of external financing and the use of internal financing considered by the authors?

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

The use of external financing makes the company closely dependent on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources / if the corporation attracts funds from external sources that may be needed for large-scale expansion of its business, management decisions are more complex and require, accordingly, more time.

Answers to questions can be given in other formulations that are close in meaning.

Suggest why external investors are more skeptical of the firm's prospects for success than are its managers. What organizations can act as external investors (using social science, list any three types of such organizations)?

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

Managers are not liable for the company's debts, their task is to attract investors, so they give optimistic assessments of business prospects, and investors calculate possible risks, so their assessments are more skeptical;

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided between existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

3) in a situation of financial instability in the country, sharp fluctuations in the exchange rate of the national currency and low quotations of "blue chips", a large-scale expansion of business with the attraction of expensive loans may not be economically feasible. Other pertinent explanations may be given.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Increasing the volume of external financing of the business increases the degree of control of the owner over the enterprise.

2) The most common form of financing is a bank loan.

3) Internal business financing does not involve additional costs associated with raising capital.

4) The internal sources of business financing include the leasing of unused assets of the firm.

5) Financing of private business cannot be of a state nature.

Explanation.

1) Increasing the volume of external financing of a business increases the degree of control of the owner over the enterprise - no, it’s not true, on the contrary, it lowers it.

2) The most common form of financing is a bank loan - yes, that's right.

3) Internal financing of a business does not involve additional costs associated with raising capital - yes, that's right.

4) The internal sources of business financing include the leasing of unused assets of the firm - yes, that's right.

5) Financing of private business cannot be of a state nature - no, it is wrong, it can.

Answer: 234.

Roma Aliyev 07.06.2016 21:17

the lease of the firm's assets appears to have been an external source of funding. Written in the book FIPI I'll pass the exam.

Valentin Ivanovich Kirichenko

No, this is an internal source

Tatiana 12.12.2016 10:33

Hello! we did not understand why Internal financing of a business does not involve additional costs associated with raising capital.

Valentin Ivanovich Kirichenko

Internal financing - we use our assets, what belongs to us and we do not need to make any efforts, let alone expenses

Read the text and complete tasks 21-24.

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings, wages accrued but not paid. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For a joint-stock company that has a stable position in its business and does not intend to significantly expand it with the attraction of significant funds, decisions on financial issues are made, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. External investors usually want to see detailed plans for how their funds will be used, and they also want to make sure that companies' investment projects will generate cash flows sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of sources of internal financing.

(According to Z. Body, R. Merton)

What sources of business financing are indicated in the text? Specify two types. Based on the text, give two examples for each of them.

Explanation.

The correct answer must include the following items:

1) Types of sources:

Domestic financing;

External funding.

2) Two examples are given for each:

Domestic funding:

1) retained earnings;

2) accrued but not paid wages;

External funding:

1) funds of creditors and shareholders;

2) funds from the issue of bonds or shares.

Sources of internal and/or external funding may be specified in other formulations that are similar in meaning.

Based on social science knowledge, explain the meaning of the concept of "entrepreneurship". What two directions of the financial policy of a joint-stock company that does not plan a significant expansion of production are named in the text? What is the essential difference between the use of external financing and the use of internal financing considered by the authors?

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

Answers to questions can be given in other formulations that are close in meaning.

Why is a large-scale expansion of the company's business not always economically feasible? Using the text, social science knowledge and facts of social life, give three explanations.

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided among existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Internal sources of business financing include borrowed capital.

2) Financing refers to the process of formation of the company's capital in all its forms.

3) External financing always ensures the financial independence of the enterprise.

4) Internal financing involves the use of the firm's own funds.

5) Shareholding allows the firm to raise external funds.

Explanation.

According to the place of origin, the financial resources of an enterprise are classified into: internal financing and external financing.

Internal financing involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income.

External financing uses funds received by the organization from outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

1) Internal sources of business financing include borrowed capital - no, that's not true.

2) Financing refers to the process of formation of the company's capital in all its forms - yes, that's right.

3) External financing always ensures the financial independence of the enterprise - no, it is not true.

4) Internal financing involves the use of the firm's own funds - yes, that's right.

5) Shareholding allows the firm to raise external funds - yes, that's right.

Answer: 245.

Answer: 245

What sources of business financing are indicated in the text? Specify two types. Based on the text, give two examples for each of them.

Read the text and complete tasks 21-24.

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings, wages accrued but not paid. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. External investors usually want to see detailed plans for how their funds will be used, and they also want to make sure that companies' investment projects will generate cash flows sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of sources of internal financing.

(According to Z. Body, R. Merton)

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

Answers to questions can be given in other formulations that are close in meaning.

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Why is a large-scale expansion of the company's business not always economically feasible? Using the text, social science knowledge and facts of social life, give three explanations.

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided among existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

Explanation.

The correct answer must include the following items:

1) Types of sources:

Domestic financing;

External funding.

2) Two examples are given for each:

Domestic funding:

1) retained earnings;

2) accrued but not paid wages;

External funding:

1) funds of creditors and shareholders;

2) funds from the issue of bonds or shares.

Sources of internal and/or external funding may be specified in other formulations that are similar in meaning.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) The level of self-financing of an enterprise depends on its internal capabilities.

2) The profit of the firm is considered as an external source of business financing.

3) In a market economy, the production and economic activities of firms can be carried out with the involvement of borrowed funds.

4) The issue of shares and their placement on the stock exchange can become a source of financing for an enterprise.

5) Funding from own funds simplifies the adoption process management decisions for enterprise development.

Explanation.

1) The level of self-financing of an enterprise depends on its internal capabilities - yes, that's right.

2) The company's profit is considered as an external source of business financing - no, it is not true, it is an internal source.

3) In a market economy, the production and economic activities of firms can be carried out with the involvement of borrowed funds - yes, that's right.

4) The issue of shares and their placement on the stock exchange can become a source of financing for an enterprise - yes, that's right.

5) Financing at the expense of own funds simplifies the process of making managerial decisions on the development of an enterprise - yes, that's right.

Answer: 1345.

Answer: 1345

Valentin Ivanovich Kirichenko

Question and answer from KImov developers

Alexey Polyansky 17.01.2019 04:39

why is not true Profit of the firm is considered as an external source of business financing. ?

Ivan Ivanovich

The profit of the firm, depreciation, income from the property of the firm, these are internal sources of business financing.

Ivan draws up a business plan for the development of his enterprise. Which of the following can he use as a source of business financing? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) profit from the sale of the enterprise's products

4) depreciation fund funds

5) issue and placement of shares of the enterprise

6) increase in labor productivity

Explanation.

All sources of financing in business can be divided into internal and external. Internal - these are the sources that the company itself has. The firm's main internal source of finance is its profits.

The profit of the company is the difference between its income and costs or the cost of production. Now it is easy to figure out what the size of the company's profit depends on.

External - other firms. A firm that is short of funds may find partners who have the same problems. By creating a joint business, partners get the opportunity to expand their financial resources due to economies of scale. Selling shares is also a way to raise finance from outside, and it is a very important source of funding as a firm can have hundreds or thousands of shareholders. Banks. If a firm cannot or does not want to seek additional funds for its development by merging with other firms, it borrows them from the bank. A bank is a financial institution that opens settlement accounts and attracts deposits (deposits) from some firms and individuals and provides funds in the form of a loan to other firms and individuals. Such a transaction between a bank and a firm is called a bank loan.

3) profit from the sale of the company's products - yes, that's right.

4) depreciation fund funds - yes, that's right.

5) issue and placement of shares of the enterprise - yes, that's right.

6) increase in labor productivity - no, that's not true.

Answer: 1345.

Answer: 1345

Establish a correspondence between examples and types of business financing sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in response, arranging them in the order corresponding to the letters:

A	B	IN	G	D

Explanation.

According to the place of origin, the financial resources of an enterprise are classified into internal financing and external financing. Internal financing involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income. With external financing, funds are used that come into the organization from the outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

A) issue and sale valuable papers- external.

B) net profit - internal.

C) attraction of investments - external.

D) the use of loans - external.

D) depreciation charges - internal.

Answer: 21221.

Answer: 21221

Select the correct judgments about the economy of the company from the list below and write down the numbers under which they are indicated.

Explanation.

1 TO fixed costs in the short run include logistics costs. No, it is not true, since their volume depends on the volume of goods and services produced.

2) Firms have the opportunity to use part of the profits as sources of financing. Yes, that's right, this is one of the internal sources of business financing.

3) One of the external sources of business financing is the attraction of loans. Yes, that's right.

4) The profit of the firm is the sum of costs and revenues. No, it's not true, profit is the difference between revenue and costs.

5) Revenue is the value received from the sale of products manufactured by the company or services rendered by the company. Yes, that's right. Not to be confused with profit.

Answer: 235.

Answer: 235

Firm Z plans to expand production. Which of the following can they use as a source of business funding? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) increase in labor productivity

4) profit from the sale of the enterprise's products

5) improvement of production technologies

6) issue and placement of shares of the enterprise

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs and residual (net) profit. Reimbursement of production costs is related financing, since the funds are allocated to certain areas of expenditure. Residual income is the profit that remains in the firm after taxes have been paid. Net income is used by the entrepreneur to pay for various expenses in the firm, except for expenses. Cash from the residual income is used to develop the business, to pay dividends, and to reward employees of the company. Internal sources of financing include investments of the company's founders in the authorized capital, as well as funds received after the sale of the company's shares, the sale of the company's property, and the receipt of rent for the lease of property.

External sources are divided into two groups: debt financing, gratuitous financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans, long-term credits and loans, accounts payable.

1) attracting loans - yes, that's right.

2) tax deductions - no, not true.

3) increase in labor productivity - no, that's not true.

4) profit from the sale of the company's products - yes, that's right.

5) improvement of production technologies - no, it is not true.

6) issue and placement of shares of the enterprise - yes, that's right.

Answer: 146.

Answer: 146

Establish a correspondence between examples and types of funding sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in response, arranging them in the order corresponding to the letters:

A	B	IN	G	D

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs, residual (net) profit. Reimbursement of production costs is related financing, since the funds are allocated to certain areas of expenditure. Residual income is the profit that remains in the firm after taxes have been paid. Net income is used by the entrepreneur to pay for various expenses in the firm, except for expenses. Cash from the residual income is used to develop the business, to pay dividends, and to reward employees of the company. Internal sources of financing include investments of the founders of the company in the authorized capital, as well as funds received after the sale of the company's property, receiving rent for renting out the property.

Any business needs funding at the stage when it is just starting and has not reached self-sufficiency.

Young businessmen need support, and since the state is in no hurry to provide it, they have to look for alternative options, where everyone chooses to their taste.

External options

External sources include those that are not associated with the firm itself and allocate money from outside. They may be attracted by different things - from a share in the profits to a percentage of the debt - but the essence is always the same: you can always find someone who will finance the project.

There are two types of them:

Debt. These are sources that provide money at interest and timely return. This method of financing is considered the best, since it implies that the relationship between the lender and the borrower will end as soon as the entire loan and interest on it are paid. However, there is a risk: if the company is unable to repay the loan, this will affect its reputation and overall financial condition.
Equity. These are sources that provide money against a share in future profits or against a share in a firm. The relationship with the lender will never end, because after the conclusion of the contract, he becomes the owner of a part of the borrower's organization.

Debt includes:

Loan secured by property. In this case, the guarantor that the loan will be repaid becomes the property of the borrower - most often immovable, as the most stable both in price and in safety.
Overdraft. A loan in which the amount of the debt is paid not in installments, but in full, within a specific period.
Bonds. In this case, the company pays with IOUs, securities, which imply that the debt will be paid on time.
Leasing. In this case, the organization receives an asset in advance for use, as if on a lease, with the right to repurchase it later. It is considered the most profitable way of lending, since it involves receiving not just money, but a certain useful thing in work.

Shares include:

Equity raising. In this case, the company issues shares, which over time will begin to bring profit to shareholders. With the right advertising and a well-thought-out business plan, they can make good capital.
Attracting venture capital. Venture capital is like a game of Russian roulette - investors provide young companies with money if they find it interesting. In return, the investor receives a share in the company's income.

All external sources of funding involve risk. Loan defaults, investors misbehaving or refusing to invest further can undermine the fortunes of a young firm. Therefore, it is believed that the best solution is to try to survive on internal resources.

Internal options

Internal sources include those that do not require the involvement of people from outside and do not differ in such great risks. Among them:

retained earnings. If the company already has the first profit, it can use it to satisfy its needs and provide the next profit, which can be used to expand and improve the enterprise.
Automatic funding. In this case, the passive credit debt of the company increases, as well as distributed, but not yet paid wages. They are used to meet the needs of the enterprise, which significantly increases its risks - if the business does not pay off, there will be nothing to pay wages and repay the loan.
Capital optimization. In this case, finances appear due to the reorganization of the business. For example, a company buys better machines that will run twice as fast in the future, or cuts gas costs to free up additional cash.
Getting rid of non-core assets. If an asset does not bring benefits, you can sell it and buy something that will bring it.

In general, the competent use of internal assets and start-up capital is the key to any successful business. But sometimes you simply cannot do without external financing - at the initial stages, for example, when the activity goes to zero and is not yet profitable.

You can learn more about all the options for raising funds from the following video:

What do you need to get investment?

Money doesn't come from thin air. To get funding, you need to attract an investor, and to do this, you need a few things:

A well-thought-out business plan that an investor can be interested in, and preferably a person who can present it. It should indicate:
- The idea and purpose for which a business is created.
- Its description is what it will bring to people, how it will look for the consumer.
- Investment proposal - what exactly is required from the investor and what he will receive if the business works out.
- Team - who is going to work on the project and how professional these people are.
- Product, market and production - how the product or service will be produced, how it will be sold and whether buyers are interested in it.
- Assets - what does the firm have in order to do business? intellectual property should also be mentioned at this point.
- Business model - how everything will work, how the activity will be arranged from the inside.
- Project economics – estimated funding, start-up capital, the time when the forecast is expected to make the first profit.
- Actions to be taken after the investment is received – what will be bought, what will be improved and where it will lead.
Pledge. If it is not possible to attract an investor solely on the idea - and this may well happen if it is not truly brilliant (and in this case history knows examples when a genius never found funding), something will need to be offered bank as collateral for a loan. Real estate or a car is fine.
Credit history. To get a loan, it is necessary that there are no past due debts.

In addition, you need patience in order to continue trying after the tenth refusal, and determination, so that even after the hundredth “no” you continue to believe in your project and achieve its implementation.

Social science. Full course of preparation for the exam Shemakhanova Irina Albertovna

2.7. Main sources of business financing

Financing - a way to provide entrepreneurship with cash. Domestic funding sources- sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. These may be investments of the founders of the company in the authorized capital; cash received after the sale of the company's shares, the sale of the company's property, the receipt of rent for the lease of property, income from the sale of products.

1) Profit (gross) - the difference between its income and costs or production costs, i.e., the total profit received before all deductions and deductions are made. Net income (residual income) is the difference between the amount of sales revenue and all costs of the enterprise.

2) Depreciation - calculated in monetary terms depreciation of fixed assets in the process of their use, production use. The instrument for compensating for the depreciation of fixed assets is depreciation deductions in the form of money allocated for repairs or construction, or the manufacture of new fixed assets. The amount of depreciation is included in the production costs (cost) of products and thus goes into the price.

External funding sources

1) debt financing - borrowed capital (short-term loans and loans; long-term loans).

– Loan capital is an independent part economic capital, which functions in the form of cash in the field of entrepreneurial activity.

– mortgage loan- mortgage loan. This loan is the most common form of secured loan. Its essence is that the firm, upon receipt of debt funds, guarantees the creditor to repay the debt, taking into account interest.

– Trade Credit is a commercial loan, is that the entrepreneur buys the goods, postponing its payment.

– Stock are a common form of fundraising. By issuing and selling shares, an entrepreneurial firm receives a debt loan from the buyer, as a result of which the shareholder acquires the right to the property of the company, as well as to receive dividends. Dividends in this case are interest on a loan, which is presented in the form of money paid for shares.

2) Transformation of an individual enterprise into a partnership.

3) Transformation of the partnership into a closed joint stock company.

4) Use of funds from various funds to support small businesses.

5) Gratuitous financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies.

Sale of shares- also a way to attract finance from outside, and this is a very important source of financing, since a company can have hundreds or thousands of shareholders.

State budget financing:

– The state allocates funds to public sector enterprises in the form of direct capital investments. Public sector enterprises are owned by the state. This means that the state also owns the profit from their activities.

- The state can also provide firms with its funds in the form of subsidies. This is a partial financing of the activities of firms. Subsidies can be issued to both public and private firms. The main difference between state financing and a bank loan is that the company receives funds from the state free of charge and irrevocably.

- State order: the state orders the company to manufacture a particular product and declares itself to be its buyer. The state does not finance costs here, but provides the company with income from the sale of goods in advance.

This text is an introductory piece. From the book All Caucasian Wars of Russia. The most complete encyclopedia author Runov Valentin Alexandrovich

From the book of the twentieth century Encyclopedia of inventions author Rylev Yury Iosifovich

The main sources used Aviation: Encyclopedia / Ch. ed. G.P. Svishchev. - M.: Great Russian Encyclopedia, 1994. Bernatosyan S.G. Records of nature and human activity. - Mn.: Askar, 1994. Biographical dictionary of natural science and technology: in 2 volumes / Responsible. ed.

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Main sources Parandovsky Ya. Alchemy of the word; Petrarch; Word king. - M., 1990. Wilde O. Aphorisms and paradoxes. - N. Novgorod, 1999. Wilde O. Favorites. - M., 1989. Wilde O. Selected works in 2 volumes. - M., 1960.-T.1-2. Wilde O. Selected works in 2 volumes - M., 1993.-T. 2.Wilde O.

From the book by George Bernard Shaw. Aphorisms by Shaw Bernard

MAIN SOURCES JB Shaw Autobiographical Notes; Articles; Letters. - M., 1989. Show J.B. Thoughts and fragments. - M., 1931. Show J.B. About drama and theater. - M., 1963. Show J.B. About music and musicians. - M., 1965. Shaw J. B. Letters. - M., 1971. Show J. B. Full. coll. plays in 6 volumes - L., 1978 - 1980. - V.1 -

From the book The Big Book of Aphorisms author

Main sources 1. In Russian Allen. Judgments // Foreign Literature. - M., 1988. - No. 11. Amiel A. From the diary. - St. Petersburg, 1901. Aphorisms: According to foreign sources. - M., 1985. Babichev N., Borovsky Ya. Dictionary of Latin winged words. - M., 1988. Babkin A. M., Shendetsov V. V. Dictionary

From the book Guide to Life: Unwritten Laws, Unexpected Advice, Good Phrases made in USA author Dushenko Konstantin Vasilievich

Key sources 21st Century Dictionary of Quotations. - New York, 1993. Bloch A. Murphy's Law 2000. - New York, 1999. Bloch A. Murphy's Law, and Other Reasons why Things Go Wrong. - Los Angeles, 1980. Boone L. E. Quotable Business. - New York, 1999. Brilliant A. Appreciate Me Now and Avoid the Rush. - Santa Barbara, 1981. Byrne R. 1,911 Best Things Anybody Ever Said. – New York, 1988. Cohen J. M. and M. J. The Penguin Dictionary of Twentieth-Century

From the book Thoughts, aphorisms and jokes of famous men author Dushenko Konstantin Vasilievich

MAIN SOURCES 1. In Russian, Peter Abelard. History of my disasters. - M., 1994. Aphorisms: According to foreign sources. - M., 1985. Balzac O. Physiology of marriage. - M., 1995. Bogoslovsky N. Notes on the brim of a hat and something else. - M., 1997. Borokhov E. Encyclopedia of aphorisms. - M.,

From the book Thoughts, aphorisms and jokes of prominent women author Dushenko Konstantin Vasilievich

MAIN SOURCES Abelard P. History of my disasters. - M., 1994. Svetlana Aleksievich: A moment of love as a moment of truth / The conversation was led by Y. Yuferova // Person. - M., 2000. - No. 4. Irina Alferova: "The new time needs a new female look" / The conversation was conducted by S. Yagodovskaya. // Your leisure. - M., 1999. -

From the book Thoughts and Aphorisms by Heinrich Heinrich

The main sources of Heine G. Sobr. op. in 10 vols. - M., 1956 - 1959. Heine G. Sobr. op. in 6 vols. - M., 1980-1983. Heine G. Selected Thoughts. - SPb., 1884. Heine in the memoirs of his contemporaries. - M., 1988. Gijdeu S. Heinrich Heine. - M., 1964. Tynyanov Y. Tyutchev and Heine // Tynyanov Y. Poetics. Story

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58. MAIN TYPES OF PROGRAMS FOR BUSINESS DEVELOPMENT PLANNING In some cases, when a full-fledged business plan is not required, but only a feasibility study, you can use the ROFER Business Plan M product or similar programs for calculating and writing a feasibility study. Systems for

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From the book Thoughts, aphorisms, quotes. Business, career, management author Dushenko Konstantin Vasilievich

Main sources 1. In RussianAphorisms: According to foreign sources. - M., 1985. Bayton A. et al. 25 key books on economics: Analysis and comments. - Chelyabinsk, 1999. Business and manager. - M., 1992. Beers A. "Dictionary of Satan" and stories. - M., 1966. Boyett J. G., Boyett J. T.

Business financing- is supply money (financial resources) or the allocation of money (financial resources) for something.

In cases where financing is aimed at making a profit from this supply (allocation), it turns into investment(or investment financing). Investment financing, as a rule, is aimed at supporting the image, rating, and profitability of the company. At its core, the investment type of financing is designed to attract another type - trade finance, that is, direct support of the firm's capital.

In a broader sense of this concept, the following can be distinguished: types of financing:

paid (compensated) - credits, loans, leases, loans;
free (gratuitous) - gift, donation, subsidy, grant, subsidy, etc.

Types of funding sources.

All sources of financing in business can be divided into external and internal.

Internal source refers to the personal property of the company. First, this profit, that is, the difference between the company's income and the cost of goods or costs. Distinguish gross profit(i.e. total profit, excluding taxes) and residual profit(i.e. the net profit remaining after all expenses have been deducted). Secondly, it is a reasonable distribution of stocks. Timely purchased or sold goods allow you to extract additional profit.

There are many external sources of funding:

other companies (an element of partnership is one of the main ones in business);
shares (the sale of shares allows you to attract financial resources outside the company);
banks (loans are the most popular sources of financing);
commodity loans (or trade loans - a type of loan that is given not by a bank, but by another company in the form of a product);
state ( budget financing or government order).

2.7 Main sources of business financing

I. Internal sources of business financing (net profit, depreciation)

II. External sources of business financing (bank loans, investments, etc.)

Financing- Replenishment of funds of the enterprise.

Sources of business financing:

1) Internal (accumulated profit, depreciation, property income, additional investments)
2) External (bank loan, investments, sale of shares/bonds, budgetary funds)
- When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out.
- The state has the right to finance private business.
I. Internal sources of business financing.

internal sources can serve as the net profit of the firm and depreciation.

Their use is called self-financing ”, i.e. financing from own funds. Self-financing is mainly inherent in small enterprises that find it difficult to get money from other sources.

The profit of these enterprises is small, so it is extremely rare to expand production with its help. There is one more source of self-financing - depreciation deductions .

Consider the possibilities of their use on a conditional example.
Suppose that an entrepreneur bought a machine for 150 thousand rubles, the service life of which is 5 years. This means that the annual depreciation rate will be 30 thousand rubles. (150 OOO: 5). Depreciation deductions are included in the costs of production and sale of goods, so if an enterprise produces 300 products per year, then 100 rubles will be included in the price of each product. (30,000: 300). After 5 years, the entrepreneur will accumulate 150 thousand rubles. and will have to buy a new machine. But since technical progress does not stand still, after 5 years a similar new generation machine may cost more and money will have to be added.

I. External sources of business financing.
External sources are divided into two groups: debt financing and grant financing.

Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies.
Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans; long-term credits and loans; accounts payable.
External sources are bank loans, funds from budgets of different levels, funds from extra-budgetary funds, funds from the population.

Examples of external sources of business financing:

Joint business, partners get the opportunity to expand their financial resources due to economies of scale;
- sale of shares - a way to attract finance from outside;
- trade (or commodity) credit (sale of goods with deferred payment);
- public budget financing: direct capital investments ( state enterprises); subsidies (partial financing of firms) are issued to both public and private firms; state order (the state does not finance costs, but provides the company with income from the sale of goods in advance).
- Bank loan;

Bank loan (the most common form of financing) - amount of money issued by the bank a certain period on the terms of repayment and payment of a certain percentage.

Loans are of two types - short-term And long-term. Short-term loans are issued for a period not exceeding one year, and long-term - more than one year.

Investments- long-term investments of the capital for the purpose of reception of the income. Investment is indispensable integral part modern economy. Investments differ from loans in the degree of risk for the investor (lender) - the loan and interest must be repaid within the agreed timeframe, regardless of the profitability of the project.

Atconditions that ensure the effectiveness of investment:

1) Investing makes sense if the return on investment exceeds the rate of inflation
2) Investing is only worthwhile if you can get more net income from it (after taxes) than from keeping money in a bank.
3) Investment is possible only in the most profitable projects.

Do not confuse investing and financing.

Financing- the allocation of funds or resources to achieve the intended goals. If the purpose of financing is to make a profit, then financing becomes an investment.