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Business Studies IGCSEPDF 22
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Money spent on non-current (fixed) assets that will last for more than one year,
such as buildings or machinery.
● Revenue expenditure:
Money spent on daily operations like wages, rent, and materials.
● Internal finance:
Finance raised from within the business, such as retained profits or the sale of
assets.
● External finance:
Finance obtained from outside the business, such as loans or share issues.
● Retained profit:
Profit kept in the business after owners have taken their share.
● Sale of existing assets:
Selling unwanted non-current assets to raise finance.
● Owners’ savings:
Money invested by the owner(s) from personal savings.
● Issue of shares:
Selling shares in a limited company to raise capital.
● Bank loan:
A fixed sum of money borrowed from a bank, repaid with interest over time.
● Overdraft:
A short-term borrowing facility allowing a business to spend more than it has in
its bank account.
Trade credit:
●
Buying goods from suppliers on account and paying for them later.
● Hire purchase:
Paying for non-current assets in installments over time.
● Leasing:
Renting an asset rather than purchasing it outright.
● Microfinance:
Providing small loans to poor individuals or small businesses in developing
countries.
● Crowdfunding:
Raising finance by collecting small amounts of money from many people online.
● Short-term finance:
Finance needed for up to one year (e.g. overdrafts, trade credit).
● Long-term finance:
Finance needed for more than one year (e.g. loans, share capital).
Capital expenditure: