IB Business Unit 3.1 Sources of Finance Crossword

When a bank agrees to allow a business to borrow up to an agreed limit as and when required
Bonds issued by companies to raise finance, often with a fixed rate of interest
Items of monetary value that are owned by a business
A source of finance whereby the government gives money to an organization provided they apply for it and meet certain requirements
Finance raised from sources outside the business
An asset is sold to a company which agrees to make fixed repayments over an agreed time period; the asset belongs to the company
The purchase of assets that are expected to last more than one year
Individual investors who put in their own money in a variety of businesses and are seeking a better return than they would obtain from conventional investments
selling of claims over debtors to an institution in exchange for immediate liquidity (cash).
Spending on all costs other than assets that are expected to last more than one year
the profit left after all deductions, including dividends, have been made; this is 'ploughed back' into the company as a source of finance
A financial obligation of a business that it is required to pay in the future
When a business borrows money to be paid back at a future date
The ability of a firm to pay its short-term debts
Loans that do not have to be repaid for at least one year
Finance raised from the business's own assets or from profits left in the business
Financial benefits given by the government to a business to reduce costs and encourage increased production
when owners of a privately owned company sell shares to the general public as a source of finance
Obtaining the use of equipment or vehicles and paying a rental charge over a fixed period. This avoids the need for the business to raise long-term capital to buy the asset; ownership remains with the rental company
the difference between the value of an asset and the value of the liabilities owed on that asset
by delaying payments to creditors or suppliers, a business can obtain some short-term finance
The provision of very small loans by specialist finance businesses, usually not traditional commercial banks
Permanent finance raised by companies through the sale of shares
Existing shareholders are given the right to buy additional shares at a discounted price