Edexcel AS Level June 2026
Mathematics Paper 1 Pure
Mathematics Solved Paper
Capital - answer-The money provided by the owners in a business
Capital expenditure - answer-Spending on business resources that can be used
repeatedly over a period of time
Internal finance - answer-Money generated by the business or its current owners
Retained profit - answer-Profit after tax that is 'ploughed back' into the business
Revenue expenditure - answer-Spending on business resources that have already been
consumed or will be very shortly
Sale and leaseback - answer-The practice of selling assets, such as property or
machinery, and leasing them back from the buyer
Authorised share capital - answer-The maximum amount that can be legally raised
Bank overdraft - answer-An agreement between a business and a bank that means a
business can spend more money that it has in its account (going 'overdrawn'). The
overdraft limit is agreed and interest is only charged when the business goes overdrawn
Capital gain - answer-The profit made from selling a share for more than it was bought
Crowd funding - answer-Where a large number of individuals invest in a business or
project on the internet, avoiding the use of a bank
Debenture - answer-A long-term loan to a business
Equities - answer-Another name for an ordinary share
External finance - answer-Money raised from outside the business
Issued share capital - answer-Amount of current share capital arising from the sale of
shares
, Lease - answer-A contract to acquire the use of resources such as property or
equipment
Peer-to-peer lending (P2PL) - answer-Where individuals lend to other individuals
without prior knowledge of them, on the internet
Permanent capital - answer-Share capital that is never repaid by the company
Secured loans - answer-A loan where the lender requires security, such as property, to
provide protection in case the borrower defaults
Share capital - answer-Money introduced into the business through the sale of shares
Unsecured loans - answer-Where the lender has no protection if the borrower fails to
repay the money owed
Venture capitalism - answer-Providers of funds for small or medium-sized companies
that may be considered too risky for other investors
Collateral - answer-An asset that might be sold to pay a lender when a loan cannot be
repaid
Incorporated business - answer-A business model in which the business and the
owner(s) have separate legal identities
Limited liability - answer-A legal status that means shareholders can only lose the
original amount they invested in a business
Long-term finance - answer-Money borrowed for more than one year
Rights issue - answer-Issuing new shares to existing shareholders at a discount
Short-term borrowing - answer-Money borrowed for 12 months or less
Undercapitalised - answer-A business not raising enough capital when setting up
Unincorporated businesses - answer-A business model in which there is no legal
difference between the owner(s) and the business
Unlimited liability - answer-A legal status which means that business owners are liable
for all business debts
Business plan - answer-A plan for the development of a business, giving details such as
the products to be made, resources needed, and forecasts such as costs, revenues and
cash flow
Mathematics Paper 1 Pure
Mathematics Solved Paper
Capital - answer-The money provided by the owners in a business
Capital expenditure - answer-Spending on business resources that can be used
repeatedly over a period of time
Internal finance - answer-Money generated by the business or its current owners
Retained profit - answer-Profit after tax that is 'ploughed back' into the business
Revenue expenditure - answer-Spending on business resources that have already been
consumed or will be very shortly
Sale and leaseback - answer-The practice of selling assets, such as property or
machinery, and leasing them back from the buyer
Authorised share capital - answer-The maximum amount that can be legally raised
Bank overdraft - answer-An agreement between a business and a bank that means a
business can spend more money that it has in its account (going 'overdrawn'). The
overdraft limit is agreed and interest is only charged when the business goes overdrawn
Capital gain - answer-The profit made from selling a share for more than it was bought
Crowd funding - answer-Where a large number of individuals invest in a business or
project on the internet, avoiding the use of a bank
Debenture - answer-A long-term loan to a business
Equities - answer-Another name for an ordinary share
External finance - answer-Money raised from outside the business
Issued share capital - answer-Amount of current share capital arising from the sale of
shares
, Lease - answer-A contract to acquire the use of resources such as property or
equipment
Peer-to-peer lending (P2PL) - answer-Where individuals lend to other individuals
without prior knowledge of them, on the internet
Permanent capital - answer-Share capital that is never repaid by the company
Secured loans - answer-A loan where the lender requires security, such as property, to
provide protection in case the borrower defaults
Share capital - answer-Money introduced into the business through the sale of shares
Unsecured loans - answer-Where the lender has no protection if the borrower fails to
repay the money owed
Venture capitalism - answer-Providers of funds for small or medium-sized companies
that may be considered too risky for other investors
Collateral - answer-An asset that might be sold to pay a lender when a loan cannot be
repaid
Incorporated business - answer-A business model in which the business and the
owner(s) have separate legal identities
Limited liability - answer-A legal status that means shareholders can only lose the
original amount they invested in a business
Long-term finance - answer-Money borrowed for more than one year
Rights issue - answer-Issuing new shares to existing shareholders at a discount
Short-term borrowing - answer-Money borrowed for 12 months or less
Undercapitalised - answer-A business not raising enough capital when setting up
Unincorporated businesses - answer-A business model in which there is no legal
difference between the owner(s) and the business
Unlimited liability - answer-A legal status which means that business owners are liable
for all business debts
Business plan - answer-A plan for the development of a business, giving details such as
the products to be made, resources needed, and forecasts such as costs, revenues and
cash flow
