Key terms(2.1.1)

Question 1

Economic variables definition

Answer 1

features of an economy which have effects on business and consumers
e.g unemployment, inflation and exchange rates

Question 2

Internal finance definition

Answer 2

the raising of capital/cash from within/inside the business
e.g business/owners capital, personal savings, retained profit

Question 3

Personal savings/owners capital definition

Answer 3

a source of (internal) finance provided by the owner of a business/personal money from the owner

Question 4

Retained profit definition

Answer 4

profit is re invested back into/kept by the business which is not paid as a dividend
internal source of finance

Question 5

Sales of assets definition

Answer 5

a type of internal finance
involves selling resources that belong to the business