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Money Bag

Unit 3 - Finance & accounts

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Chart Increasing

Unit 1 - Introduction To Business Management

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Briefcase

Unit 2 - Human Resource Management

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Direct Hit

Unit 4 - Marketing

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Factory

Unit 5 - Operations management

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Bar-Chart

Unit 6 - Assessment

🚀 Let&#39;s dive into the financial world of businesses, where money flows from every nook and cranny. Get ready for a money adventure!

<ul>
	<li>
	What is it? It&#39;s the money sole traders pour in from their savings. Imagine emptying your piggy bank to buy the toy you always wanted!
	</li>
	<li>
	Advantages

	<ul>
		<li>Super Control: It&rsquo;s like having a remote control where YOU decide the channel.</li>
		<li>Confidence Boost: It shows commitment, making banks and investors more interested.</li>
	</ul>
	</li>
	<li>
	Disadvantages

	<ul>
		<li>HUGE Risk: It&#39;s like betting all your candies on one game. Lose the game, lose the candies.</li>
		<li>Not Always Enough: What if your piggy bank isn&rsquo;t full enough to buy that toy?</li>
	</ul>
	</li>
</ul>

🌎 Real-world example: Have you ever saved up for something big? That&#39;s a mini version of what sole traders do when they start their business!

<ul>
	<li>
	What is it? Profits not distributed as dividends. Think of it as not eating all your candies today so you can have some tomorrow!
	</li>
	<li>
	Advantages

	<ul>
		<li>Cost-effective: No extra cost, just pure profit!</li>
		<li>Forever Yours: Unlike borrowed money, you never give it back.</li>
		<li>Stay in Control: It&#39;s your candy, eat it how you want!</li>
	</ul>
	</li>
	<li>
	Disadvantages

	<ul>
		<li>Newbies Struggle: New businesses? Zero candies to start with.</li>
		<li>Limited Growth: Low retained profit = less candy for tomorrow.</li>
		<li>May Deter Investors: Offering no or very little candy today might turn some friends away.</li>
	</ul>
	</li>
</ul>

🌎 Real-world example: Ever saved part of your allowance for a bigger toy in the future? That&rsquo;s you using retained profit!

<ul>
	<li>
	What is it? Selling stuff you don&rsquo;t need anymore. Out with the old, in with the new (money)!
	</li>
	<li>
	Advantages

	<ul>
		<li>Cash Injection: Turn that dusty old teddy into fresh money.</li>
		<li>No Debt!: No pesky borrowing costs.</li>
	</ul>
	</li>
	<li>
	Disadvantages

	<ul>
		<li>Established Kids Only: New kids on the block might not have toys to sell.</li>
		<li>Takes Time: Finding someone to buy your old yoyo might take a while.</li>
	</ul>
	</li>
	<li>
	Cool Twist - Sale and Leaseback: Sell your toy but rent it too. Like selling your bike but still getting to ride it on weekends!
	</li>
</ul>

🌎 Real-world example: Remember selling an old toy at a garage sale? And then maybe renting a video game you couldn&rsquo;t buy? You&rsquo;ve been using the Sale of Assets and Sale and Leaseback strategies!

&nbsp;

🥳 Wrap-Up: So there you have it! The ins and outs of where businesses can get their money from internally. Always remember, it&rsquo;s not just about getting the money, but how you use it and manage it that makes the difference. The next time you&rsquo;re saving up or selling something, think of these concepts and give yourself a pat on the back for being a mini business whiz! 💼🚀

&nbsp;

Remember, in business, as in life, save wisely, spend wisely, and never be afraid to invest in your dreams! 💫🌈

Unlocking Internal Finance: Pros & Cons For Businesses

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Higher Level

Business Management HL

Unit 3 - Finance & accounts

Unlocking Internal Finance: Pros & Cons For Businesses

Table of content

Personal funds - the money - in - the - piggy - bank technique 💰

Unlock the Full Content!

Unit 3 - Finance & accounts

Unlocking Internal Finance: Pros & Cons For Businesses

Table of content

Personal funds - the money - in - the - piggy - bank technique 💰

Unlock the Full Content!