Choosing Appropriate Finance (Edexcel A-Level Business): Flashcards
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Practise the cards
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Long-term finance timeframe
Long-term finance timeframe
More than one year
Short-term borrowing timeframe
Short-term borrowing timeframe
12 months or less
Share capital repayment status
Share capital repayment status
Permanent capital, never repaid
Collateral definition
Collateral definition
Assets that can be sold to repay loans if necessary
Funding type for capital expenditure
Funding type for capital expenditure
Long-term sources
Funding type for revenue expenditure
Funding type for revenue expenditure
Short-term sources
Unlimited liability meaning
Unlimited liability meaning
No legal difference between owner(s) and business
Limited liability protection
Limited liability protection
Shareholders can only lose their original investment
Rights issue definition
Rights issue definition
Existing shareholders buy new shares at discounted price
Businesses that can issue shares/debentures
Businesses that can issue shares/debentures
Only limited companies