business

what is the definition of capital

• capital are funds or capital

• the money generated from the business operations

• anything that increases your ability to generate value

• all of the above ><

why do business need to raise finance? (don’t use capital letter)

revenue expenditure is recorded in statement financial position as fixed asset

• true v/

• false x

list an example of inflow

what is the advantages of retained profit

• ploughing back profit into a business - use of emergency

• it is not always available.

• owners receive less reward for their risk

• interest-free source of funds

draw one example of capital expenditure

find the answer of x and y

• 20 & 0

• 20 & (40)

• (20) & 0

• (20) & 5

what are examples of the main sources of finance

• amount required

• to expand

• no security

• for takeovers

advantages of owner’s fund

• provide a quick, interest-free source of funds.

• efficient management of

  cash is good business practice.

• a firm ensure it still has sufficient stock to meet customer demand

• enable a business to release large sums of money.