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A Level Accounting Summer Independent Learning Activity
Sources of Finance
Welcome to A Level Accounting! As part of your studies in this subject, you need to
learn about sources of finance.
A ‘source of finance’ is a place from where a business obtains the money (also
known as ‘capital) to operate.
You are expected to know about the following sources of finance: owner’s capital
(owner’s savings); partners’ capital; bank overdraft; bank loan; mortgage; ordinary
shares; debentures
For each source of finance above, you’ll need to know a definition, the features of
the source of finance, and the advantages and disadvantages each source of
finance to the business.
Task 1
Open up a word document and create a table like the one below. Using the links
over the page, complete the table for each source of finance. These should then be
printed and brought to your first class when you begin college in September.
Type of finance: Owner’s Capital
Definition/ general description
Advantages
Disadvantages
