Financial Planning For A Business Flashcards
What is Capital Expenditure for a business?
The purchase of fixed assets.
What is a cash-flow forecast?
The business version of a budget.
What does short term needs mean for a business?
Items of expenditure that must be paid for within the current financial year.
What is a venture capital company?
It invests in high risk or new businesses.
What is the APR? (Annual Percentage Rate.)
A standardised measure of borrowing cost.
What is leasing?
Involves renting an asset over a number of years.
What is Debt Capital?
Money borrowed from an external source that must be repaid with interest.
What is collateral?
Another name for security required when getting a loan.
Who are Debtors?
People who owe money to a business.
What is an overhead?
Another name for expenses.
Name three short-term needs
Wages, Stock, Light and heat
Name four medium terms.
Vehicles, raw materials, expanding the premises, machinery.
Name four long-term needs.
Premises, land, fixtures and fitting, insurance.
List three short-term sources of finance.
Bank overdraft, retained profit, invoice discounting.
List three medium-term sources of finance.
Leasing, credit card, hire purchase.
