Key Terms Flashcards
Capital
The money provided by the owners in a business
Capital Expenditure
Spending on business resources that can be used repeatedly over a period of time
Internal Finance
Money generated by the business or its current owners
Retained Profit
Profit after tax that is ‘ploughed back’ into the business
Sale and Leaseback
The practice of selling assets, such as property or machinery, and leasing them back from the buyer
Sale and Leaseback
The practice of selling assets, such as property or machinery, and leasing them back from the buyer
Sale and Leaseback
The practice of selling assets, such as property or machinery, and leasing them back from the buyer
Authorized Share Capital
The maximum amount that can be legally raised
Bank Overdraft
An agreement between a business and a bank that means a business can spend more money than it has in its account (going ‘overdrawn’). The overdraft limit is agreed and interest is only charged when the business goes overdrawn
Capital Gain
The profit made from selling a share for more than it was bought
Crowd Funding
When a large number of individuals (the crowd) invest in a business or project on the internet, avoiding the use of a bank
Debenture
A long-term loan to a business
Equities
Another name for an ordinary share
External Finance
Money raised from outside the business
Issued Share Capital
Amount of current share capital arising from the sale of shares
