What are unsecured loads

repay the money owed, Where lender has no protection if the borrower fails to

What is share capital?

Cash introduced into the firm through the sale of share

What is capital gain?

Profit made for selling a share for more than it was bought

What is capital expenditure?

Spending on business resources which can be used repeatedly, over a period of time

Cash given by a gov. or other org. for a particular purpose, e.g startup capital or additional investment.

particular good for a period of time to the other party, A contract where one party grants the right to use a

What is hire purchase?

Making installment payments over time. In contract buyer is, leasing goods doesn't own it till full contract paid

What is retained profit?

Profit after tax which is reinvested back into the business

The sale of shares in a firm to raise large sums of capital

What is debt factoring?

party to improve their cash flow, A firm sells their invoices to a third

What is revenue expenditure?

consumed or will be very shortly, Spending on business resources that have already been

What is trade credit?

Where items are bought on a 'buy now pay later' scheme

What is issued share capital?

Amount of current share cap. araising from sale of shares

What is authorised share capital?

The maximum amount of capital which can be legally raised

What is a venture capitalist?

An investor/firm who gives cash to start up ventures or, supports small firms who wish to expand but are unable to

What is permanent capital?

Share capital that is never repaid by a company

What is an overdraft?

they have in account (interest changes when limit exceeded), Agreement between firm+bank meaning firm can spend more than

What are secured loans?

case the borrower does not pay back the loan in time agreed, A loan where the lender requires security e.g property in

What is internal finance?

Cash generated by a business or its current owners

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Sources of finance

20 termsStudBud Administration605 plays

Questions from chapters 26 & 27

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Questions 20

Answers

1
What are unsecured loads
interest on loan if borrower is unsuccessful with payments
Where the lender has permission to increase the rate of
repay the money owed
Where lender has no protection if the borrower fails to
2
What is share capital?
Cash introduced into the firm through the sale of share
Total cost to firm of undertaking an IPO and selling shares
The debt of a firm due to sales of its shares and goods
The total amount of cash spent on the purchasing of shares
3
What is capital gain?
Profit made for selling a share for more than it was bought
Profit made by a firm through its efforts in selling goods
Profit made from paying off another firm's debt
Cash generated through crowd funding
4
What are equities?
Cost which are not affectes by output
Cash which the business owes to its lender's
Shares
Assets
5
What is capital expenditure?
Spending on business resources which can be used repeatedly
circumstances such as unforeseen high costs
Cash which is leaking out of the business due to
over a period of time
6
What are grants?
Cash given by a gov. or other org. for a particular purpose
Labour and workers provided by the government and orher
business in order to help decrease unemployment levels.
e.g startup capital or additional investment.
7
What is leasing?
particular good for a period of time to the other party
making installment payments over time. In contract buyer is
leasing goods doesn't own it till full contract paid
A contract where one party grants the right to use a
8
What is hire purchase?
Making installment payments over time. In contract buyer is
amount is paid they don't obtain full ownership of the asset
Where the purchaser makes annual payments but once the total
leasing goods doesn't own it till full contract paid
9
What is retained profit?
Profit after tax which is reinvested back into the business
Profit which the business uses to purchase assets
Profit which is used to pay out bonuses for workers
Profit that is kept in the business for unforeseeable events
10
What is share issue?
Undergoing an IPO to increase public awareness for the firm
The process where a firm goes public on the stock market
The sale of shares in a firm to raise large sums of capital
Purchasing shares from other firms in order to raise cash
11
What is debt factoring?
invoice in order to make a profit and improve liquidity
The purchasing of debt and then the paying-off of that
party to improve their cash flow
A firm sells their invoices to a third
12
What is revenue expenditure?
consumed or will be very shortly
before tax and total costs are factored in
Total amount of cash generated from the sales of products
Spending on business resources that have already been
13
What is trade credit?
Where items are bought on a 'buy now pay later' scheme
A method of pricing which encourages consumers to spend more
Where you are eligible for discounts on products for loyalty
Consumers have to pay for the good at the time it's bought
14
What is issued share capital?
Amount of cash given by the gov. Or other orgs. to firms
Amount of current share cap. araising from sale of shares
The maximum amount of cash that can be legally raised
The total value of a firm's own shares and shares bought
15
What is authorised share capital?
The legal amount of cash which can be invested into the firm
Permis. for capital to be raised through purchase of shares
The authority for firms to buy shares in other firms
The maximum amount of capital which can be legally raised
16
What is a venture capitalist?
firm which is struggling with their fixed costs
An investor/firm who gives cash to start up ventures or
An individual who temporarily finances the expenses of a
supports small firms who wish to expand but are unable to
17
What is permanent capital?
Share capital that is never repaid by a company
Money used to finance the maintenance of a firm's assets
Cash stored in bank in case unexpected increase in demand
Profit made by a firm from the sale of its long term assets
18
What is an overdraft?
they have in account (interest changes when limit exceeded)
Agreement between firm+bank meaning firm can spend more than
Where a firm spends more than they have in their account so
their cash flow is frozen by bank due to poor credit terms
19
What are secured loans?
case the borrower does not pay back the loan in time agreed
A loan where the lender requires security e.g property in
amount of time e.g paying off mortgage within 5 years agreed
Loans which a firm has successfully paid back in the agreed
20
What is internal finance?
Paying off internal financial costs from cash in the bank
Cash generated from methods such as loans or borrowing
Discussing whether or not to sell a company's assets
Cash generated by a business or its current owners

Sources of finance Flashcards | StudBud