Sources of Finance Flashcards
What is revenue?
The amount of money a business receives from selling the good or service
What is expenditure
The money that a business spends
What is income?
The money that a business receives
What is an owners fund?
Money put into the business by the owner(s)
What is new share issue?
Selling new shares to people or existing shareholders
What is an overdraft?
A flexible loan which businesses can use whenever necessary up to an agreed limit
What is a family/friend loan?
Borrowing from family and friends
What is hire purchase?
Purchasing assets and paying in installments
what is trade credit?
A period of time which suppliers allow customers before payment for supplies must be made
What is a mortgage?
A special type of loan to buy property
What is a bank loan?
Money lent to a business from the bank
What is retained profit?
Profit made by the business in previous years
What is a government grant?
A sum of money given to a business
What is selling assets?
Selling something that business owns such as machinery
Name 3 reasons why an established business may want to raise finance.
To expand, improve efficiency and develop new products
