BMan unit 3

• Revenue Expenditure: Spending made by a business to support its daily operational activities and routine functions
• Collateral: The financial guarantee for securing external loan capital to finance investment expenditure for business growth
• Capital Expenditure: Business investment in fixed assets or durable equipment essential for operations
• Business Angels: Wealthy individuals who risk their own money in a business venture that has high growth potential
• Overdraft: A banking service that enables customers to withdraw more money from their account than exists in the account
• Retained profit: Internal sources of finance
• Retained profit: Profit that remain within the company after all costs are paid
• Leasing: External sources of finance
• lessor,A form of hiring whereby a lessee pays rental income to hire assets from the lessor the owner of the legal owner of the assets
• Crowdfunding: Raising finance for a business venture/project by getting small amounts of money from a large number of people
• Trade credit: Financial service that enables a business customer to purchase and obtain goods and services but to pay for these at a later date
• Share capital: Finance raised from selling shares in a limited liability company.
• Direct cost: Costs that can be clearly identified with each unit of production
• Fixed cost: Costs that do not change with the level of output
• Variable cost: Costs that change with the level of output
• Indirect(Overhead) costs: Aka overhead costs, these costs are not easily identifiable with the sale or output of specific goods, service or business operation
• Revenue stream: The different source of revenue for a business