key terms Flashcards
short-term sources of finance
Short-term finance is used to help a business maintain a positive cash flow
overdraft
An agreement with the bank to overspend on an account.
trade credit
The ability to buy stock now and pay for it at a later date
dividends
A sum of money paid regularly by a company to its shareholders out of its profits
cost of borrowing
Cost of borrowing is the interest charged on a bank loan
crowd funding
Crowdfunding is raising money from a large number of people who contribute small amounts, usually online.
ordinary shares
A share of a company entitling its holder to dividends which vary in amount depending on whether the company has a good or bad year.
permanent capital
Permanent capital is a source of finance that never has to be paid back.
investment return
The amount of money that is received in return for investing in a business.
asset
A business asset is an item of value owned by a company.
collateral
Security provided against repayment of a loan
domestic market
The supply and demand of goods and services within a single country.
venture capitalist
A venture capitalist is an individual who invests money in a start-up business in return for a share of the business and/or the profits.
investment return
The amount of money that is received in return for investing in a business.
