Short term and long term finances?!??? Business A level help plzz Watch

Sannah 21
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Plz can u name if each of these r a short term or long term finance plzz
Ik which ones internal and external but I also wanna k the above
Coz it’ll help me so much with my notes to understand them better
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Sannah 21
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Sannah 21
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Anyone??
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MathEcon
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(Original post by Sannah 21)
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Internal finance - this is finance from within the business. This includes personal savings, retained profit and sale of assets (the three you need to know)

External finance - this is finance from outside the business. This includes business angles, bank loans and any of the other ones in that section of the photo.

What I recommend is really understanding the definition rather then trying to remember which is which. By doing so, it should make it so much easier.

If you would like to talk about some of the analysis for these points, then it’s always a good idea to add to nearly any of your answers, helping to secure high marks. For instance if a firm is using external finance such as a loan you may say: “By using a bank loan, the firm must not only pay back the initial loan but with added interest, causing the average unit cost of production to be much higher then if the product was to be produced by internal finance. As a result this would mean that the firm may charge higher prices in order to maintain profit margins which may actually lead to them being less competitive, thus reducing market share and overall profits”. An analysis like this is always guaranteed to score top marks.

If you want to go a step further, always try to consider the other point of view. If the product has what we call inelastic demand such as cigarettes, then they are addictive so even if the firms production costs rise from taking out external finance, they can just raise their prices and demand won’t really change as people are additive to them. So it’s very important to write this in the context of the business given to you.

If you have any questions let me know, whether that is on this topic or another.
Last edited by MathEcon; 2 weeks ago
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Sannah 21
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(Original post by MathEcon)
Internal finance - this is finance from within the business. This includes personal avians, retained profit and sale of assets (the three you need to know)

External finance - this is finance from outside the business. This includes business angles, bank loans and any of the other ones in that section of the photo.

What I recommend is really understanding the definition rather then trying to remember which is which. By doing so, it should make it so much easier.

If you would like to talk about some of the analysis for these points, then it’s always a good idea to add to nearly any of your answers l, helping to secure high marks. For instance if a firm is using external finance such as a loan you may say: “By using a bank loan, the firm must not only pay back the initial loan but with added interest, causing the average unit cost of production to be much higher then if the product was to be produced by internal finance. As a result this would mean that the firm may charge higher prices in order to maintain profit margins which may actually lead to them being less competitive, thus reducing market share and overall profits”. An analysis like this is always guaranteed to score top marks.

If you want to go a step further, always try to consider the other point of view. If the product has what we call inelastic demand such as cigarettes, then they are addictive so even if the firms production costs rise from taking out external finance, they can just raise their prices and demand won’t really change as people as additive to them. So it’s very important to write this in the context of the business given to you.

If you have any questions let me know, whether that is on this topic or another.
Wow thank you so much!
Do u do business? Like where r u now...uni?
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MathEcon
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(Original post by Sannah 21)
Wow thank you so much!
Do u do business? Like where r u now...uni?
I studied business alongside my other a levels. I’m currently studying Economics at university. Are you looking to do business at university yourself?
Last edited by MathEcon; 2 weeks ago
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Sannah 21
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Hey
Cool!
And I’ve always wanted to do something business related in the future
But also maybe work in the bank idk
Business or finance
Im in a levels now and I’m doing Business psychology Spanish
Maybe I’ll do international business or business and finance
Idk lol
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MathEcon
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(Original post by Sannah 21)
Hey
Cool!
And I’ve always wanted to do something business related in the future
But also maybe work in the bank idk
Business or finance
Im in a levels now and I’m doing Business psychology Spanish
Maybe I’ll do international business or business and finance
Idk lol
To enter the banking industry, Economics, finance and business are all degrees which can get you there. I’d suggest you search more about economics as it’s seen as a reputable degree which in theory would make you more competitive when applying for a job. That being said, the university you go to, is, in some cases, more important than the course itself which you can see from LinkedIn. Therefore I would recommend you try to aim for the best university
Last edited by MathEcon; 2 weeks ago
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Sannah 21
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(Original post by MathEcon)
To enter the banking industry, Economics, finance and business are all degrees which can get you there. I’d suggest you search more about economics as it’s seen as a reputable degree which in theory would make you more competitive when applying for a job. That being said, the university you go to, is, in some cases, more important than the course itself which you can see from LinkedIn. Therefore I would recommend you try to aim for the best university
Oh kl thanks
Im unsure about economics
Maybe I’ll search bout it
But Is it like maths based in uni
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MathEcon
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(Original post by Sannah 21)
Oh kl thanks
Im unsure about economics
Maybe I’ll search bout it
But Is it like maths based in uni
Generally, a BSc is More mathematical and a BA is more theory based. Working in the banking industry for most roles requires competency in mathematics.
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Sannah 21
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(Original post by MathEcon)
Generally, a BSc is More mathematical and a BA is more theory based. Working in the banking industry for most roles requires competency in mathematics.
I mean maths is meh for me soo like alright
Im quite good actually but not that good lol

Anyways I’ll just search bout economics
Thx for replying 😌
Ok bye
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