General
Capital needed by an entrepreneur to start a business.
What is start-up capital?
What are/is personal funds/gift?
An individual who put in their own money in a variety of businesses and are seeking a better return than they would obtain from conventional investments.
What is a business angel?
What are/is subsidies/subsidy?
Costs that do not vary with output in the short run.
What are fixed costs?
the capital needed to pay for raw materials, day-to-day running costs and credit offered to customers. In accounting terms: __________________ = current assets - current liabilities
What is working capital?
This source of internal finance refer to the funds left after all deductions and dividends have been paid. These funds are "ploughed back into the company."
What is retained profit?
The ability of a firm to pay its short-term debts or turn its assets into cash.
Selling of claims over debtors to a ___________ ___________ in exchange for immediate liquidity; only a proportion of the value of the debts will be received as cash.
What is debt factoring?
What is revenue?
This type of finance is raised from the business's own assets or from a profits left in the business. It is one of two major categorizations of finance types.
What is internal finance?
This type of internal finance comes from a company liquidating items that they own.
What is sale of assets?
What is overdraft?
Obtaining the use of equipment or vehicles and paying a rental charge over a fixed period.
What is leasing?
Costs which cannot be identified with a unit of production or allocated accurately to a cost centre - also known as overhead costs
What are indirect costs?
Items of monetary value owned by the business.
What are assets?
These are funds generated for a business that are not paid out to the shareholders.
What are/is retained profit(s)?
An asset is sold to a company which agrees to make fixed repayments over an agreed period of time. After payments, the asset belongs to the company.
What is a hire purchase?
Permanent finance raised by companies through the sale of shares.
What is equity finance?
Total income from the sale of all units of the product
______________ = quantity x price
What is total revenue?
An accounting statement that records the values of a business's assets, liabilities and shareholder's equity at one point in time.
What is a balance sheet?
If a company can find a way to reduce their ____________ ___________ this could also be a source of internal finance.
What is working capital?
The provision of very small loans by specialist finance businesses usually not traditional commercial banks.
What is microfinance?
Risk capital invested in business start-ups or expanding small businesses, which have good profit potential, but do not find it easy to gain finance from other sources.
What is venture capital?
The income that an organization gets from a particular activity.
What is revenue stream?