AQA GCSE Business · 8132
Paper 1, Paper 2
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GCSE Business · key term
Money obtained from outside a business to help fund its activities, such as a bank loan or investment.
Used by AQA and Edexcel
Paper 1, Paper 2
Specification 2.1.1 · Paper 2
Finance obtained from outside a business, such as borrowing from lenders or raising money from investors through shares.
An established business can use internal finance, generated from resources already within the business, or external finance, obtained from lenders or investors outside it. The choice affects more than how much money is available: it can change costs, cash flow and who controls the business.
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