Theme 2 Definitions 📝💰✨

Question 1

What are economic variables

Answer 1

Feature of the economy that has effect on the business

Question 2

What is internal finance?

Answer 2

Raising capital cash within the business

Question 3

What is a bank loan

Answer 3

Sort of finance where you borrow money from a bank and pay it back

Question 4

What is average cost?

Answer 4

The cost of producing one unit

cost 💲/output

Question 5

What is inflation ?

Answer 5

General rise in prices measured by CPI

Question 6

What is hyperinflation?

Answer 6

Rapid rise in prices of good or in inflation

Question 7

What is interest ?

Answer 7

Price of borrowing to saving money

Question 8

What is liquidity ?

Answer 8

How easy it is to turn assets into cash to pay liabilities

Question 9

What is a business angel?

Answer 9

Individuals who invest money into a business in return for a state of the business

Question 10

What is crowdfunding?

Answer 10

When a large amount of individuals and provide funding for a business project for return for shares

Question 11

What is external finance?

Answer 11

Money raised outside of the business