Finance

Question 1

Start up capital

Answer 1

the finance needed by a new business to pay for essential fixed and current assets before it can begin trading.

Question 2

Working capital

Answer 2

finance needed by a business to pay its day-to-day costs

Question 3

Capital expenditure

Answer 3

is money spent on fixed assets which will last for more than one year

Question 4

Revenue expenditure

Answer 4

money spent on day-to-day expenses which do not involve the purchase of a long-term asset

Question 5

Internal finance

Answer 5

obtained from within the business itself

Question 6

External finance

Answer 6

obtained from sources outside of and separate from the business

Question 7

Micro finance

Answer 7

providing financial services - including small loans
- to poor people not served by traditional banks

Question 8

Crowdfunding

Answer 8

funding a project or venture by raising money from a large number of people who each contribute a relatively small amount

Question 9

Cash flow

Answer 9

Cash inflows and outflows during a period of time

Question 10

Cash inflow

Question 11

Cash outflow

Question 12

Cash flow cycle

Question 13

Profit

Question 14

Cash flow forecast

Question 15

Net cash flow

Question 16

Closing cash balance

Question 17

Opening cash balance