Sources Of Finance Flashcards
What is owners capital
the equity account listed in the balance sheet of a business. It represents the net ownership interests of investors in a business
What is partners capital
distinct account that shows the equity in a partnership that is owned by specific partners.
What is a bank overdraft
borrow money through your current account by taking out more money than you have in the account – in other words you go “overdrawn”
A type of loan
What is a bank loan
an amount of money borrowed for a set period within an agreed repayment schedule. The repayment amount will depend on the size and duration of the loan and the rate of interest.
What is a mortgage
agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest
What are ordinary shares
share entitling its holder to dividends which vary in amount and may even be missed, depending on the fortunes of the company.
What is a debenture
When all money is received at once with immediate effect
medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest.
