GG: SECTION 5 :Financial Information and Decisions FLASHCARDS

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What is start-up capital?

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The finance needed by a new business to pay for essential non-current and current assets before it can begin trading.

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What is working capital?

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The finance needed by a business to pay for its day-to-day activities.

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What is capital expenditure?

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Money spent on non-current assets which will last for more than one year.

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What is revenue expenditure?

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Money spent on day-to-day expenses which do not involve the purchase of a long-term asset, for example, wages or rent.

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What is internal finance?

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Finance obtained from within the business itself.

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What is external finance?

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Finance obtained from sources outside of and separate from the business.

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What is micro-finance?

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Providing financial services - including small loans - to poor people not served by traditional banks.

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What is crowdfunding?

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Funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the internet.

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What is cash flow?

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The cash inflows and outflows over a period of time.

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What are cash inflows?

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The sums of money received by a business during a period of time.