Starting up a new business, A person setting up a new business installing and maintaining burglar alarms., Replacing old machinery, equipment and premises, Buying new manufacturing equipment as a result of increased demand for products., Internal growth, A pharmaceutical company seeking to develop a new drug to treat cancer., External growth – the takeover or acquisition of another company, Walmart, the USA retailer, has taken over Jet.com, an online retailer which is the main challenger to Amazon.,, Day-to-day expenses – dealing with cash flow problems, A theme park that is only open from Easter to October needs money during the closed season for maintenance and promotional activities., Development purposes – research and development, Buying new computer equipment to replace old computers that have been in use for several years.

5.2 Why Businesses Need Finance

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