3.25 Sources of Finance Flashcards
1
Q
installment
A
series of regular payments until all the money owed has been repaid
2
Q
capital
A
finance provided by the owners of a business
3
Q
retained profit
A
profit held by a business rather than returning it to the owners which may be used in the future
4
Q
assets
A
resourced used or owned by a business - cash, machinery, tools, equipment…
5
Q
bank overdraft
A
agreement with a bank where the business spends more money than it has in its account
6
Q
trade payables
A
buying resources from suppliers, and paying for them at a later date (trade credit)
7
Q
mortgage
A
long-term loan secured with property
8
Q
repossess
A
to take back
9
Q
hire purchase
A
buying specific goods with a loan
10
Q
crowd funding
A
large number of people (the crowd) invest in a business using an online platform and avoiding using a bank
