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24 Cards in this Set
- Front
- Back
Peer to peer funding |
Pay money to a middle man who decides where your money goes.
It could go into several businesses. |
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Angel investor |
Investors who back a business taking full equity risk. (If it fails the angel investor will lose everything invested) |
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Crowdfunding |
You chose the business you invest in. The money goes to one company. If it goes bust you will loose your money. |
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Capital expenditure |
Money spent on 'infrastructure' for the business e.g equipment, vehicles. |
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Capital income |
Money raised for buying 'infrastructure' such as equipment. |
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Revenue expenditure |
Money spent on day to day items such as raw materials, wages. |
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Revenue income |
Money raised from day to day sales of products/services. |
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Bank loan |
Loan from a bank. 1-5 years Provided under a formal loan agreement. Interest (fixed or variable) |
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Bank loan |
Loan from a bank. 1-5 years Provided under a formal loan agreement. Interest (fixed or variable) |
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Share capital |
Money invested in the company by the shareholders. Long term source of investment. Shareholders gain a share of ownership of the company. |
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Bank loan |
Loan from a bank. 1-5 years Provided under a formal loan agreement. Interest (fixed or variable) |
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Share capital |
Money invested in the company by the shareholders. Long term source of investment. Shareholders gain a share of ownership of the company. |
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Sales of assets |
Business likely to have assets. Can we sold to raise cash. Once sold the business loses the use of the asset but gains cash. |
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Bank loan |
Loan from a bank. 1-5 years Provided under a formal loan agreement. Interest (fixed or variable) |
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Share capital |
Money invested in the company by the shareholders. Long term source of investment. Shareholders gain a share of ownership of the company. |
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Sales of assets |
Business likely to have assets. Can we sold to raise cash. Once sold the business loses the use of the asset but gains cash. |
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Venture capital |
Private equity finance Invest larger sums of money in return for a share of the company (usually over 50%) Minimum investment is less than 1-2 million. |
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Bank loan |
Loan from a bank. 1-5 years Provided under a formal loan agreement. Interest (fixed or variable) |
|
Share capital |
Money invested in the company by the shareholders. Long term source of investment. Shareholders gain a share of ownership of the company. |
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Sales of assets |
Business likely to have assets. Can we sold to raise cash. Once sold the business loses the use of the asset but gains cash. |
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Venture capital |
Private equity finance Invest larger sums of money in return for a share of the company (usually over 50%) Minimum investment is less than 1-2 million. |
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Retained profits |
Profits earned by the business that are kept in the business rather than distributed to the owners of the business. |
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Opportunity cost |
Benefit lost of the next best alternative when making a choice. |
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Opportunity cost |
Benefit lost of the next best alternative when making a choice. |