BTEC business 29/4 unit 3 finance recap

Which is a variable cost : ?

• rent

• raw materials

• insurance premiums

• office salaries

Which is a fixed cost ? :

• packaging

• labour wages

• delivery fuel

• BT phone line rental

Which is a long-term source of finance ?

• bank overdraft

• mortgage

• retained profit

• sale of assets

Which involves giving up some ownership control ?

• bank loan

• overdraft

• trade credit for stock

• venture capital

Insurance =

• capital expenditure

• revenue expenditure

Building a factory =

• capital expenditure

• revenue expenditure

Which source of finance allows a firm to own a vehicle ?

• hire purchase

• leasing

Peer to peer lending =

• One Lord lending to another Lord

• One seaside town lending to another seaside town

• A business owner lending to another business owner

• A bank loan

Rent received =

• Revenue income

• Capital income

Interest received (on the business bank account positive balance) =

• Capital income

• Revenue income