What is meant by 'family and friends' as a source of external finance?

Personal contacts who provide capital to a business, often with flexible or informal repayment terms.

Define banks as a source of external finance for businesses.

Financial institutions that provide external finance to businesses through various lending products.

What is peer-to-peer funding?

A method of obtaining finance through online platforms that match borrowers directly with individual lenders, bypassing traditional financial institutions.

Who are business angels?

Wealthy individuals who invest their own money in early-stage or growing businesses in exchange for equity, often providing expertise and mentoring alongside capital.

Define crowdfunding as a method of external finance.

Raising finance by collecting small amounts of money from a large number of people, typically via online platforms.

How can other businesses act as a source of external finance?

Through trade investments, strategic partnerships, or supply chain financing arrangements.

Edexcel A-Level Business 9BS0

Meeting Customer Needs

Topic overview The market Market research Market positioning

The Market

Topic overview Demand Supply Markets Price elasticity of demand Income elasticity of demand

Marketing Mix and Strategy

Topic overview Product/service design Branding and promotion Pricing strategies Distribution Marketing strategy

Managing People

Topic overview Approaches to staffing Recruitment, selection and training Organisational design Motivation in theory and practice Leadership

Entrepreneurs and Leaders

Topic overview Role of an entrepreneur Entrepreneurial motives and characteristics Business objectives Forms of business Business choices Moving from entrepreneur to leader

Raising Finance

Topic overview Internal finance External finance Liability Planning

Financial Planning

Topic overview Sales forecasting Sales, revenue and costs Break-even Budgets

Managing Finance

Topic overview Profit Liquidity Business failure

Resource Management

Topic overview Production, productivity and efficiency Capacity utilisation Stock control Quality management

External Influences

Topic overview Economic influences Legislation The competitive environment

Business Objectives and Strategy

Topic overview Corporate objectives Theories of corporate strategy SWOT analysis Impact of external influences

Business Growth

Topic overview Growth Mergers and takeovers Organic growth Reasons for staying small

Decision-Making Techniques

Topic overview Quantitative sales forecasting Investment appraisal Decision trees Critical Path Analysis

Influences on Business Decisions

Topic overview Corporate influences Corporate culture Shareholders versus stakeholders Business ethics

Assessing Competitiveness

Topic overview Interpretation of financial statements Ratio analysis Human resources

Managing Change

Topic overview Causes and effects of change Key factors in change Scenario planning

Globalisation

Topic overview Growing economies International trade and business growth Factors contributing to increased globalisation Protectionism Trading blocs

Global Markets and Business Expansion

Topic overview Conditions that prompt trade Assessment of a country as a market Assessment of a country as a production location Reasons for global mergers or joint ventures Global competitiveness

Global Marketing

Topic overview Marketing Niche markets Cultural/social factors

Global Industries and Companies

Topic overview The impact of MNCs Ethics Controlling MNCs

Raising Finance

External finance

4 things to know
Paper 2 and Paper 3

Overview

Family and friends, banks, peer-to-peer lending, business angels, crowdfunding and other businesses, and loans, share capital, venture capital, overdrafts, leasing, trade credit and grants.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Define crowdfunding, a loan, and business-to-business finance.

Key term

Define an overdraft, venture capital and leasing.

Key term

Distinguish sources of finance from methods of finance, and give an advantage and a disadvantage of a loan.

Numbers

Why might a bank withdraw an overdraft facility, and what impact could this have on a business?

Questions from this subtopic

Each one with the model answer underneath.

1
What is meant by 'family and friends' as a source of external finance?
Model answer
Personal contacts who provide capital to a business, often with flexible or informal repayment terms.
2
Define banks as a source of external finance for businesses.
Model answer
Financial institutions that provide external finance to businesses through various lending products.
3
What is peer-to-peer funding?
Model answer
A method of obtaining finance through online platforms that match borrowers directly with individual lenders, bypassing traditional financial institutions.
4
Who are business angels?
Model answer
Wealthy individuals who invest their own money in early-stage or growing businesses in exchange for equity, often providing expertise and mentoring alongside capital.
5
Define crowdfunding as a method of external finance.
Model answer
Raising finance by collecting small amounts of money from a large number of people, typically via online platforms.
6
How can other businesses act as a source of external finance?
Model answer
Through trade investments, strategic partnerships, or supply chain financing arrangements.

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Meeting Customer Needs

The Market

Marketing Mix and Strategy

Managing People

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Tariff means a tax imposed on imported goods.

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