IB Business 3.1-3.3

capital expenditure is:

• money spent to acquire item in a business that will last for more than a year
• money spent to acquire items in a business that will last only a few months

fixed assets include:

• labor,raw materials,landscape,machinery
• food,shelter,clothing
• machinery,land buildings,vehicles,equipment
• rent,wages,raw materials,insurance,fuel

fixed assets can be used as collateral (finanical secuirty pleged for repayment of a loan)

• true 
• false

revenue expenditure is defined as 

• money spent to aquire items in a business
• withdrawing more money than is an account
• money spent on the day to day running of a business

revenue expenditure consist of 

• rent,wages,raw materials,insurance,fuel
• machinery,land,buildings

revenue expenditure

• short term focus
• long term focus
• medium term focus

internal sources of finance

• personal funds,sale of assets and retained profit
• land, equipment,insurance
• none of the above

sole traderś personal savings

• personal funds
• sale of assets
• retained profit
• none of the above

obsolete machinery or redundant buildings,land and equipment

• personal funds
• retained profit
• sale of assets
• both a and c

profit that remains after a business has paid tax to the government and dividends to shareholder.

• personal funds
• retained profit
• sale of assets
• all the above