Unit 3.1 introduction to Finance

Question 1

capital expidenture

Answer 1

finance spent on fixed assets

Question 2

revenue expidenture

Answer 2

finance spent on daily expedentures of business

Question 3

examples of capital expidentures

Answer 3

Capital equipment
Furniture
fixtures and fittings
Computer and IT systems
Intellectual property
Machinery
Mergers and acquisitions
Property and premises Vehicles

Question 4

examples of revenue expidentures

Answer 4

Advertising and promotion Energy costs
Freight and delivery
Insurance
Office supplies and administration Raw materials and components
Rent
Wages and salaries

Question 5

collateral

Answer 5

refers to the financial guarentees for securing external loan capital to finance expedenture for business growth