Section 4.2: Types of expenditure

_____________ is when a business buys a different business with a good reputation and a lot of customers, they pay for goodwill. The price of goodwill will increase as the reputation of the business improves.

• trademark

• patent

• capital expenditure

• Goodwill

__________________is used to buy capital items. These are items that will stay in the business for a long time.

• capital income

• revenue income

• capital expenditure

• revenue expenditure

_________________________________is legal protection of a new product or service. A business can buy a patent. This patent can be for an idea or a real product or service. A business pays for a patent to stop others from developing the same product or service. It allows them to create an original product or service that the customers cannot buy anywhere else.

• log

• trademark

• Patent

• Capital expenditure

_______________is a symbol, logo or brand name that makes a business stand out from other businesses. One business can buy the trademark of another business. The price of the trademark will increase as the business becomes more popular.

• Capital expenditure

• Capital income

• Trademark

• revenue income

____________________ are non-current assets can also be called fixed assetsor tangible assets. These can include a premises, machinery, equipment and vehicles

• capital income

• tangible

• intangible

• revenue expenditure

______________ is when a business can spend their money on intangible assets. These are things that the business owns but that cannot be touched, such as goodwill, trademark, patent or brand name

• intangible

• tangible

• income

• expenditure

Maryam’s fashion business is doing well in the UAE and she would like to expand___________. There are a few choices. She chooses to buy a business with a______________. A business that people trust because of its excellent quality and_________________.

• good reputation

• customer service

• internationally

• capital expenditure

Select the famous products and services that have a patent.

• iPhone

• Bluetooth

• Virtual Reality

• Quadcopter Drone