Assets - Items that a business owns; those used up within a year are current assets, those kept longer than a year are non-current assets, Cash flow - The level of money that a business has at any one time – insufficient cash will lead to the inability to pay bills on time, Liabilities - Debts that a business owns; those paid within a year are current liabilities, those paid over a period of years are non-current liabilities, Raw materials - The unprocessed ingredients or materials that are needed to produce a product – these are a variable cost of production, Share capital - A one-off cash inflow from raising and selling additional shares in a business, Capital expenditure - Money spent on purchasing fixed assets (buildings, machinery etc) that will be used in the business for more than a year, Revenue expenditure - Money used to cover short term day-to-day expenses and to help generate sales (stock purchases, ages, advertising etc), External Finance - Money obtained from sources outside of the business, Internal finance - Money obtained from within the business, Equity - This most commonly refers to raising money by selling shares in the company. It can also refer to owners funds (private equity), Retained profit - When a business uses profit as a source of finance, Sale of assets - A firm could sell buildings, machinery, vehicles or even parts of its business to raise finance., Overdrafts - A bank allows a business to draw out of its account more than it has deposited for an agreed fee., Grants - Governments can offer grants to businesses. Grants are available to businesses setting up in certain locations, selling certain products or creating employment opportunities., Micro-financing - Micro-finance allows people on very low incomes to borrow small amounts of money to start up or expand a small business, Crowd-sourced financing - Based on micro donations (sometimes as low as a £), crowd sourced financing utilises the social power of the internet to help small firms launch creative projects or environmentally friendly products., Revenue/sales - The money that a business receives from the sale of its product or service., Overheads - These are the bills that a firm has to pay on a monthly or quarterly basis e.g. electricity and water., Liquidity - The extent to which a business can meet its short term liabilities (debts), i.e. The extent to which a business can pay its bills, Non-current liabilities - Amounts of money borrowed over a long period of time so there is more than one year to pay the debt back. E.g. mortgages and long term bank loans,

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