Okoth Douglas

External sources of finance are from sources that are outside the business. External sources of finance can either be: A)Ownership capital B)Non-ownership capital Introduction A) Ownership Capital Ownership capital is the money invested in the business by the shareholders themselves. It…

Internal sources of funds are sources within the business or funds provided by the entrepreneur. Advantages of Internal Sources of Funds Due to the personal attachment one has to his finances, the funding is committed to the business and the…

Internal sources are sources within the business or funds provided by the entrepreneur. They are often preferable to a firm as they are usually cheaper and perhaps easier to arrange at short notice. However, the potential for arranging large amounts…

Any government policy that is aimed at reducing aggregate output (income) (Y) is said to be contractionary. Where the expansionary policy is used to boost the economy, the contractionary policy is used to slow the economy. Why the government would…

Any government policy aimed at stimulating aggregate output (income) (Y) is said to be expansionary. An expansionary fiscal policy is an increase in government spending (G) or a reduction in net taxes (T) aimed at increasing aggregate output (income) (Y).…

Means of payment are the methods or ways the buyer may use to settle debts arising from a business transaction. There are various means of payment cash being one of them. Cash refers to the use of notes and coins…

To Hire means to use someone else’s property for payment for a duration of time. Goods sold on higher purchases are durable and expensive such as; vehicles, furniture, electronics, buildings etc. Hire purchase is a method of hiring property with…

Mobile shops, like itinerant traders, move from town to town or village to village selling their goods. They have vehicles that they have converted into a shop from which customers can buy their goods. They visit different towns at regular…

Tied shops are a type of small-scale retailer with shops These are shops that mainly sell the products of one particular manufacturer or are owned by a specific supplier of certain goods. The shops are owned or controlled by the…

Open-air market Traders are a type of small-scale retailer without shops  Open-air markets are places set aside by the government through the local authorities where people meet to buy and sell goods.  Traders selling similar commodities are allocated a special…