3.1 - Intro to finance

Question 1

investment spending on fixed assets, like purchase of machinery, equipment, land and buildings

Answer 1

capital expenditure

Question 2

financial guarantee for securing external loan capital to finance investment expenditure for business growth

Answer 2

collateral

Question 3

items of monetary value that have a long-term function for businesses, so it can be used repeatedly

Answer 3

fixed assets/non-current assets

Question 4

spending on day-to-day running of a business, such as payments of rent, wages, salaries, and utility bills

Answer 4

revenue expenditure