AQA AS BUSS 1 key terms for Raising Finance
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Ordinary Share Capital: money given to a company by shareholders in return for a share certificate that gives them a part of the ownership of the company and entitles them to a share of profits
Loan Capital: money received by an organisation in return for the organisation’s agreement to pay interest during the period of the loan and repay the loan within an agreed time
Bank Loan: a sum of money provided to a firm or an individual by a bank for a specific, agreed purpose
Bank Overdraft: when a bank allows an individual or organisation to overspend its current account in the bank up to an agreed limit for a stated period of time.
Venture Capital: Finance that is provided to small or medium-sized firms that seek growth but which may be considered as risky by typical share buyers or other lenders
Personal Sources of Finance: money that is provided by the owner(s) of the business from their own savings or personal wealth.
Loan Capital: money received by an organisation in return for the organisation’s agreement to pay interest during the period of the loan and repay the loan within an agreed time
Bank Loan: a sum of money provided to a firm or an individual by a bank for a specific, agreed purpose
Bank Overdraft: when a bank allows an individual or organisation to overspend its current account in the bank up to an agreed limit for a stated period of time.
Venture Capital: Finance that is provided to small or medium-sized firms that seek growth but which may be considered as risky by typical share buyers or other lenders
Personal Sources of Finance: money that is provided by the owner(s) of the business from their own savings or personal wealth.
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