unit 6.1 quizlet

Question 1

Sources of finance

Answer 1

A way for business to raise funds

Question 1

Internal source of finance

Answer 1

Money that is available form within the business

Question 2

External source of finance

Answer 2

Money that comes from outside the business

Question 2

Internal sources - examples

Answer 2

Owners funds, retained profits

Question 3

External sources - examples

Answer 3

Bank loan, overdraft

Question 4

revenue equation

Answer 4

selling price x quantity

Question 5

total costs equation

Answer 5

fixed costs + variable costs

Question 6

total variable costs equation

Answer 6

variable cost per unit x number of units

Question 7

profit equation

Answer 7

revenue - total costs

Question 8

new share issue

Answer 8

selling more shares of the business

Question 9

overdraft

Answer 9

a negative balance on a bank account which is pre agreed with the bank

Question 10

trade credit

Answer 10

time period given by suppliers before you need to pay them

Question 11

selling assets

Answer 11

selling buildings or machinery

Question 12

hire purchase

Answer 12

buying something in installments