1- putting a business idea into practice

Question 1

overdraft

Answer 1

short term, an agreement by the bank to allow a business to take more money out of its bank account than it has paid into

Question 2

venture capital

Answer 2

long term, capital raised through selling shares to individuals, or businesses who are willing to invest in small or medium businesses

Question 3

share capital

Answer 3

long term, selling part of the ownership or the business, shareholders have the right to contribute towards decision making and the part of the yearly profits

Question 4

crowd funding

Answer 4

long term, raising capital online from a large number of small investors

Question 5

trade credit

Answer 5

short term, when a supplier is willing to provide goods/ services and wait for the payment for 1 or 2 months

Question 6

bank loan

Answer 6

long term, a sum of money obtained from the bank and repaid over an agreed period with interest

Question 7

personal savings

Answer 7

long term, a business owner who invests their own money into the business to get it started or if cash flow problems arise

Question 8

retained profit

Answer 8

long term, profit kept within the business and not paid out through dividends