Small Business Things Flashcards
1
Q
Revenue Expenditure
A
Expenditure on a company’s general operational costs (day to day running costs)
e.g. paying wages, repayment of mortgages/loans, paying suppliers, utility bills
2
Q
Capital Expenditure
A
Expenditure on investment
e.g. factories, equipment, technology
3
Q
Internal Sources of Finance
A
Personal funds, retained profits, the sale of assets
4
Q
External sources of finance
A
Equity (when the equity provider receives partial ownership)
5
Q
A
Business angel: A wealthy business person who invests their money into a new business that is not yet
6
Q
Profit Centre
A
Anything that contributes to a business overall revenue while also generating costs
7
Q
Cost Centre
A
A department or unit of a company that contributes to solely costs and not revenues
8
Q
A
