3.1
Finance raised from the business own asset or profit
What is internal finance?
Finance raised from sources outside the business
What is external finance?
Costs that vary with output
What is variable costs?
Jeff Bezos Net worth
137 $ Billion
Owners's savings that are used to fund sole traders
What are personal funds?
Machinery and land that is sold to raise funds.
What is sale of assets?
Costs which cannot be identified with a unit of production AKA overhead costs
What is indirect costs?
What is Apple?
The profit left after all the deductions including dividends
Retained profit
Financial benefits given by the government to a business to reduce costs and encourage increased production
What is a subsidy?
What type of cost is piece rate labour wages
Variable, Direct
What did Nintendo originally sell?
Playing cards
Bank agrees to a business borrowing up to an agreed limit as and when required
What is overdraft?
Individual investors who put their money in start up business seeking a return
What is a business angel?
What type of cost is factory rent?
Indirect, Fixed
19 million dollars paid for a steak lunch with this famous business guru
Who is Warren Buffet?
Lenders have no voting rights at annual general meetings.
What is an advantage of loan capital?
It never has to be repaid- it is permenant capital.
What is an advantage of share capital/equity finance?
What type of cost is an fixed interest on a loan?
Fixed, Indirect
Current Bitcoin price (ballpark is acceptable)
19,200$