IGCSE Business Studies Key Terms 19

amount owed to a business by its customers who bought goods on credit

permanent finance provided by the owners of a limited company

profit remaining after all expenses, tax & dividends are paid. Often put back into the business

use of a non-current asset by paying fixed amount per time period for a fixed period of time. 

provision of finance by a bank which the business repays with interest over agreed time period

small amounts of capital loaned to entrepreneurs often where finance is difficult to obtain

the capital needed by an entrepeneur when first starting a business

source of permanent capital available to limited liability companies

selling trade receivables to improve business liquidity

loans or debt that a business expects to pay back within one year

the capital needed to finance the day-to-day running expenses and pay short term debts

debt or equity to finance purchase of non-current assets or expansion - repaid after 5 years

long-term loans used for the purchase of land or buildings

spending by a business on non-current assets such as machinery and buildings

an agreement with the bank which allows a business to spend more money than in its account

bonds issued by companies to raise long-term finance usually at a fixed rate interest

resources owned by a business which will be used for a period longer than one year

purchase of an asset by paying fixed repayment amount pr time period over agreed period of time