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Flashcards for content: 2.1
Fichas del conjunto (36)
- 1CapitalThe money provided by owners in a business.
- 2Capital ExpenditureSpending on business resources that can be used repeatedly over a period of time. E.g. a company vehicle, machinery or a factory.
- 3Revenue ExpenditureSpending on business resources that have already been consumed of will be very shortly. E.g. wages, raw materials or fuel.
- 4Retained ProfitProfit after tax that is put back into business and not returned to the owners.
(+) No interest/admin (+) Flexible
(-) Opportunity Cost
(-) If used there are lower dividends for shareholders - 5Sale of AssetsAn established business may be able to sell some unwanted assets to raise finance.
- 6Sale and leasebackThe practice of selling assets such as property or machinery, and leasing them back from the buyer.
- 7Owner's CapitalMoney provided by the owner of a business, usually from personal savings.
- 8External FinanceMoney raised from outside the business.
- 9Bank OverdraftAn agreement between a business and a bank that mean a business can spend more money than it has in its account (going 'overdrawn'). The overdraft limit is agreed and interest is only charged when the business goes overdrawn.
- 10Crowd fundingWhere a large number of individuals (the crowd) invest in a business or or project on the internet, avoiding the use of a bank.
- 11DebentureA long-term loan to a business.
- 12EquitiesAnother name for an ordinary share.
- 13Issued share capitalAmount of current share capital arising from the sale of shares.
- 14LeaseA contract to acquire the use of resources such as property or equipment.
- 15Peer-to-peer lending (P2PL)Where individuals lend to other individuals without prior knowledge of them, on the internet.
- 16Permanent CapitalShare capital that is never repaid by the company.
- 17Secured LoansA loan where the lender required security, such as property, to provide protection in case the borrower defaults.
- 18Share CapitalMoney introduced into the business through the sale of shares.
- 19Unsecured loansWhere the lender has no protection if the borrower fails to repay the money owed.
- 20Venture capitalismProviders of funds for small or medium-sized companies (SMEs) that may be considered too risky for other investors.
- 21Capital GainThe profit made (by a shareholder) from selling a share for more than it was bought.
- 22CollateralAn asset that might be sold to pay a lender when a loan cannot be repaid.
- 23Incorporated businessA business model in which the business and owner(s) have separate legal identities.
- 24Limited liabilityA legal status that means shareholders can only lose the original amount they invested in a business.
- 25Long-term financeMoney borrowed for more than one year. e.g. mortgage.
- 26Rights issueIssuing new shares to existing shareholders at a discount.
- 27Short-term borrowingMoney borrowed for 12 months or less. E.g. bank overdraft.
- 28UndercapitalisedA business not raising enough capital when setting up.
- 29Unincorporated businessA business model in which there is no legal distinction between the owner(s) and the business.
- 30Unlimited liabilityA legal status which means that business owners are liable for all business debts.
- 31Business planA plan for the development of a business, giving details such as the products to be made, resources needed, and forecasts such as costs, revenues and cash flow.
- 32Cash-flow forecastThe prediction of all expected receipts and expenses of a business over a future time period which shows the expected cash balance at the end of each month.
- 33Cash inflowsThe flow of money into a business.
- 34Cash outflowThe flow of money out of a business.
- 35Net cash flowThe difference between the cash inflows and cash outflows in a given period of time.
- 36SolvencyThe degree to which a business is able to meet its debts when they are due.
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- Fichas sobre Flashcards for content: 2.1, creado por J Brookes el 13/06/2017.
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