3.1

Question 1

Finance and Accounts
The part of the business responsible for:

Answer 1

Acquiring money for the business
managing this money
cash flow management
bookkeeping
budgeting etc.

Question 2

Why may businesses need finance?

Answer 2

businesses spend a money on a variety of things:
employees
buying inputs
buying new machinery
research & development into a new product

Question 3

Capital Expenditure

Answer 3

Purchase of fixed assets e.g.
factories, machinery, vehicles, furniture
usually will last more than 1 year
main purpose is to drive growth in the business

Question 4

Revenue Expenditure

Answer 4

Spending on the day-to-day costs of running the business, e.g.
utility bills
employee salaries
office supplies
rent
insurance
paid daily weekly monthly
not being able to pay these is bankruptcy