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NotesBusiness ManagementTopic 3.2
Unit 3 · Finance and Accounts · Topic 3.2

IB Business Management — Sources of finance

Topic 3.2 covers internal and external sources of finance, including share capital, loan capital, overdrafts, trade credit, leasing, venture capital, and crowdfunding. Students evaluate the suitability of different finance sources for specific business contexts.

Exam technique guidePractice questions

What you'll learn in Topic 3.2

  • 3.2.1 Internal sources of finance
  • 3.2.2 External sources of finance
  • 3.2.3 Short-term versus long-term finance
  • 3.2.4 Purchasing versus leasing

Exam relevance

Business Management is assessed through Paper 1 (case study) and Paper 2 (structured questions). Expect to apply these concepts to business scenarios using appropriate tools and terminology.

Suggested study order: Read the notes for each sub-topic below → test yourself with flashcards → attempt practice questions → review exam technique.

Study resources — 3.2 Sources of finance

3.2.1

Internal sources of finance

Notes
3.2.2

External sources of finance

Notes
3.2.3

Short-term versus long-term finance

Notes
3.2.4

Purchasing versus leasing

Notes

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Topic 3.2 Sources of finance forms a core part of Unit 3: Finance and Accounts in IB Business Management. Mastering these concepts will strengthen your understanding of connected topics across the syllabus and prepare you for exam questions that require analysis, evaluation, and real-world application.

Frequently asked questions

What does Topic 3.2 Sources of finance cover in IB Business Management?
Topic 3.2 covers sources of finance as part of the IB BM syllabus. Students learn key business concepts, tools, and frameworks that are assessed in Paper 1 (case study) and Paper 2 (structured questions).
How should I revise Sources of finance for IB Business Management exams?
Start with the micro-topic notes to build understanding, then use flashcards for key terms and formulas. Practise applying concepts to case study scenarios and review how marks are allocated in IB mark schemes.
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