Chapter 4 Finding Funds Flashcards
What are funds
Funds are money used to set up businesses and pay for their expenses.
What is start up capital
Start-up capital refers to the amount of money an entrepreneur needs to set up an enterprise.
What is capital expenditure
Capital expenditure is money spent on items which last for a long period of time in a business.
What is revenue expenditure
Revenue expenditure is money spent on the day-to-day expenses of an enterprise
What is internal sources of finance
Internal sources of finance are funds that are generated within the business.
What are savings
Savings is money kept aside for future use
What is external sources of finance
External sources of finance are funds generated from outside the business.
What is a bank loan
A bank loan is money lent by bank for a given period of time against payment of interest.
What is interest
Interest is the additional sum of money paid on the amount borrowed.
What is a short term loan
Short term loan is a loan which has to be repaid in less than a year.
What is a short term loan
Short term loan is a loan which has to be repaid in less than a year.
What is a long term loan
Long term loan is granted for a period of more than three years.
What is a security
A security is a guarantee provided by the borrower to the bank that the loan will be repaid.
What is a security
A security is a guarantee provided by the borrower to the bank that the loan will be repaid.
