sources of business finance Flashcards

1
Q

retained money

A

-money kept in the business to fund future expenditure
-profit=sales revenue-total costs

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2
Q

net current assets

A

-shows the money available in the business to fund day-to-day expenditure
-current assets-current liabilities

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3
Q

sale of assets

A

selling an item of value in order to achieve a cash injection.

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4
Q

owners capital

A

money invested in the business from the owner’s personal savings

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5
Q

venture capital

A

investment from an experienced entrepreneur in return for a stake in the business

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6
Q

grants

A

a lump sum provided to a business by the government or another organisation to be used for a specific purpose

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