First 212 words of the document:
Short term sources of finance: Overdraft Facility, Trade Credits, Factoring
Long term sources of finance: Bank Loans, Investors, Shareholders, Debentures, Grants,
Mortgage, Hire Purchase (Leasing)
A creditor is an individual or business that has lent funds to a business and is owed money.
A debtor is an individual or business who has borrowed funds from a business and so owes
Revenue is the total amount of money a business receives for products and services in a
period of time.
Revenue = Number of Sales x Price
Variable Costs are costs that change with the amount of output produced (eg. Flour in a
Fixed Costs are costs which stay the same, whatever the output. (eg. Office Hire)
Profit is when revenue is greater than total costs.
Loss is when total costs exceed revenue.
Losses can be reduced by Cutting Costs and Increasing Revenue.
Quiz on Sources of Finance
Quiz on Revenue, Costs and Profit