Sources of business financing. What are the sources of business financing? Internal and external Leasing is an external source of business financing

10.10.2020

Happy day to everyone who stumbled upon this post in the middle, or at the end of the working day! Today we will reveal such a minor, auxiliary topic as the main sources of business financing. You just need to delve into this topic if your goal is to understand how the economic system society. Let me remind you that the study of this section is provided for by all the specifications of the discipline "Social Science"

Sources of financing

Business is, in short, entrepreneurial activity, the purpose of which is to make a profit, that is, roughly speaking, to make money. Business starts with the first transaction, when you sell something: a product or a service, or something else (who knows what will be invented there in the future!).

Every business starts with start-up capital. He can be anyone. For example, one of my friends started a business with 10,000 rubles and from a closet that he rented. In it, he began to repair computers. This happens if you do not have rich relatives who can help with start-up capital.

Thus, the first source of business financing is personal savings of citizens. This is the money that you put in socks, or in a box, or in a piggy bank.

Second source business finance are investments. An investor can invest in your company, firm, or personally in you if he sees the potential in your business. Of course, the investor is also wildly risky. But that's why he is an investor, to risk his money.

For example, everyone knows the history of Apple, how many movies about Steve Jobs have been made! Steve himself called investors to invest in his startup in the garage. In the end, the guys from Silicon Valley were lucky and they invested money in them, and did not lose.

As for Russia, there are many investors in Russia, but they are afraid to invest money, preferring foreign offshore companies and foreign companies.

The third such source are bank loans. You can go to the bank, and if you have a good credit history and you defend your business plan well, they can give you a substantial sum.

Another source is government grants. You look on the Internet for a state organization that distributes grants for entrepreneurial activities and go ahead. For example, in our Perm Territory, the Ministry of Agricultural Development gave, and seems to give, grants to those who decided to start farming.

On this, in principle, the main sources of financing end and the non-main ones begin.

Among them, for example, you can highlight loans from individuals. For example, you know that your friend has money. You come to him and tell him to lend them to you. And he can give. Or maybe not. And if a person is not your friend, then he can hire bandits to beat your debt out of you.

It is clear that this is all some kind of rubbish, but there are persistent rumors that they have returned. So nothing can be ruled out.

Also, non-primary sources include the rental of property. Well, this is understandable if you already have a business and it has some kind of commercial property: official cars, or apartments, or retail space.

Something else important

There is such a task in the Unified State Examination in social studies of the second part of the test, in which you need to make a plan on a similar topic. By the way, I will now lay out this plan, which I made with my own hand. I do not recommend writing it off directly, because if it is published here, it is no longer unique.

Plan for the task of the second part:

Topic: Main sources of business financing

The concept of a source of business financing.
Internal sources

Profit from the lease of the company's assets
Financial savings
Profit from the sale of company shares

3. External sources

Bank loans
Investment funds
Public funding: e.g. through a system of grants

4. Financing a business as a condition for the success of its operation

5. Business planning as a condition for providing business with financing

I think you got the idea on this topic! Share the article on in social networks, and also join our Vkontakte group.

Sincerely, Andrey Puchkov

Search

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

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

BUT	B	AT	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 sources of financing are sources of cash receipts that are formed from 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 are sources of cash receipts that are formed from 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 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 refers to debt 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 external funding.

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 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 for how their funds will be used 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 internal financing sources.

(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 the 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 company planning a large-scale expansion of the business 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 leasing the firm's unused assets - 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 internal financing sources.

(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 the enterprise are classified into: internal funding and external funding.

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.

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.

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 internal financing sources.

(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 cash-strapped firm may find partners with similar 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 current 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	AT	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 of securities - 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 profit 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 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	AT	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 profit 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.

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 the price of each product will include 100 rubles. (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, budget funds different levels, means of off-budget funds, means of 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) - an amount of money issued by the bank for 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 (net of 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.

Many aspiring entrepreneurs are looking for sources of business financing to start their own business. It could be a loan, an investment, or a grant. In the article we will talk about the features, advantages and disadvantages of these types of investments.

Today, there are plenty of ways to find money to start your own business, which allows a budding entrepreneur to organize a small, medium or large business.

Main sources of funding

Distinguish between external and internal funding. The internal is to use equity(net profit, deductions), and external - in the use of borrowed and attracted capital.

For the organization of entrepreneurship often requires external investment. This may be a bank loan, third-party investment and a grant. These features will be discussed later. In the case of an organization, self-financing can be used. Naturally, this is the best option, because you do not have to pay an interest rate or "share" your new source of income with someone.

Direct and debt financing

Today, debt financing is considered the main source of raising money. It is beneficial in that it does not imply a partial sale of the business to another person. Often, borrowing capital brings good results. The main goal of such investments is not to gain complete control, but to fix income for a period of 1-3 years.

Direct investment is an investment in equity capital in order to generate income and get the right to participate in the management of the company. The investor has the right to participate in the board of directors, he influences the formation and change of the business management team, proposes strategies for the development of the enterprise. As world practice shows, direct investment is the purchase of more than 10% of the authorized capital of an enterprise.

The way of investing is chosen depending on your goals. If you are going to open large production, much more efficient to take .

How to get funding?

How to get funding - important question, which worries not only beginners, but also more experienced entrepreneurs. It is necessary to look for financing options after the business plan of the project has been drawn up. This is an extremely important document, without which one can hope for foreign investment. Banks and investors need to provide a plan. It is important for banks to make sure that the loan is repaid on time. As for investors, they should know after what time the enterprise will become profitable and profitable for them. About why you need and how to develop a business plan,.

When looking for funding, you must go where they want to see your plan. Present it without exaggerating sales volumes and try to make it different from other plans. If you own the property where you plan to set up a business, for example, open a chip factory, a bakery, or something similar, and the value of this property is enough to repay the loan, then you can count on a loan from almost any commercial bank.

Benefits of lending

Often business lending commercial banks are carried out without problems, but only if entrepreneurship is already developed and brings stable income or if the borrower has already developed one business and is about to open a new one. If you are going to borrow money to start a business from scratch, prepare for difficulties.

Consumer loan in a bank

If you're more attracted, well oh large enterprise you do not hesitate, take a consumer loan from a bank. Many Russian banks give loans up to 100,000 rubles without collateral without proof of income and without guarantors. To obtain more serious amounts on credit, you will need a guarantee, collateral or certificates.

Money secured by property

If you have a car, apartment, non-residential premises or other valuable property, you can take a loan secured. For development big business often the funds offered by the bank are not enough. We also note that only with 100 percent confidence in success, you can think about lending.

Investment

Investment- a good option to get money to start your own business. The search for investors is that you need to find a partner who is ready to partially or fully finance your endeavors.

Finding an investor is a difficult but quite real task. Investors are prudent and cautious people, they will not give you money for something that can fail. To attract investors or partners, you will need a carefully thought-out business plan, and it is better to turn to specialists on this issue. About how to develop this document Lenders need to be more than confident that the business they are investing their own money in will be profitable for them.

How to get a grand?

Grand is the best alternative to a bank loan and other types of financing. The advantage is obvious: the grand does not need to be returned. But keep in mind, grants are not designed for you to waste money just like that. The one who pays the money is interested in you solving his problems.

Often on business grants budget funds are allocated for the development of small and medium-sized businesses. Money is paid by those who wish to develop a priority type of activity for a certain region. For example, it is quite possible to receive a grant to create a waste processing plant, research new energy-saving technologies, and improve environment etc.

Grants are provided under innovative projects where there are serious scientific developments. The main Russian source of grants is the State Fund for Assistance to the Development of Small Forms of Enterprises in the Scientific and Technical Sphere. Sometimes the money allocate big manufacturing companies who are also interested in the development of high technologies.

Finally, let's say that one of the most promising directions, where serious investments are not needed, is a business on the Internet, the ideas of which can be. In this area, several thousand rubles are enough, you can also engage in activities where you do not need money at all, only knowledge.

Social science. Full course of preparation for the Unified State Examination 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 can be investments of the founders of the company in the authorized capital; cash received after the sale of shares of the company, the sale of the property of the company, 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 proceeds and all costs of the enterprise.

2) Depreciation - depreciation of fixed assets calculated in monetary terms in the process of their use, production use. The instrument for compensating for 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 of 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 individual enterprise to 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.

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