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13 Cards in this Set
- Front
- Back
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Sources of Finance???
Internal sources of finance: |
Sources:
Internal: Raising finance from within the business, such as retained profit or the sale of assets. |
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External sources of finance:
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External: Raising money from outside the business such as debt factoring or bank loans.
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Short term finance:
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Short Term: Finance usually intended to be paid back within a year, normaally for revenue expenditure.
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Long term finance:
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Long Term: Describes finance normally intended for capital expenditure, payback if needed within three years.
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Trading Profits:
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The difference between the income received from an organisation's normaal activities and the expenditure it incurs in operating.
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Retained Profit:
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The part of a firm's profit that is reinvested in the business rather than distributed to shareholders.
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Asset:
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Any item owned by the firm.
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Ordinary Share Capital:
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Money given to a company by shareholders in return for a share certificate that gives them part of the company and entitles them to a share of the profits....
;-) |
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Loan Capital:
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Money received by an organisation in return for the organisation's agreement to pay interest during the period of the loan and to repay the loan within an agreed time.
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Debenture:
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A long term loan (generally 25 years) made oupopoot to a firm with a fixed rate of interest repayable on a certain date.
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Bank Loan:
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a sum of money provided to a firm or an individual by a bank for a specific, agreed purpose.
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Bank Overdraft:
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When a bank allows an individual or organisation to overspend it's current account in the bank up to an agreed overdraft limit for a period of time.
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Profit Centres:
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An identifiable part of an organisation (e.g. Department, a product or a branch) for which costs and revenue (and thus profit) (God bless) can be calculated (Safe Home)
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