Types of Income 0.0 / 5 ? BusinessFinanceBTEC NationalOther Created by: Ice_FoxCreated on: 17-01-22 11:50 2 types of income Capital Income Revenue income 1 of 16 Capital Income Doesn't come from selling products/services 2 of 16 Revenue Income Income through sales 3 of 16 Types of capital income Loan Mortgage Shares Owner's capital Debentures 4 of 16 Loan Debt incurred by an individual/organisation 5 of 16 Mortgage Long-term loan secured against a property 6 of 16 Shares Public/private limited companies can sell shares to family/friends or the public to get extra income 7 of 16 Owner's Capital The money an owner has put into a business from their own savings 8 of 16 Debenture Type of bond/debt unsecured by collateral (given based on creditworthiness) 9 of 16 Types of revenue income Cash sales Credit sales Rent received Commission received Interest received Discount received 10 of 16 Cash sales Money made by the business instantly by customers paying by cash, credit card or cheque without credit 11 of 16 Credit sales Payments aren't made until several days or weeks later 12 of 16 Rent received Money received by renting out unused properties (either temporarily or full-time) 13 of 16 Commission received Commission on sales made (usually for car dealerships, holiday providers or retail outlets) + motivates staff - hard to plan finances 14 of 16 Interest received Amount of interest that has been earned by not yet cash Lender wants this to be high Borrower wants this to be low 15 of 16 Discount received Buyer of goods/services is granted a discount by the seller 16 of 16
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