Edexcel AS/A Level Business 2024
Theme 2 exam Questions and Answers
100% Pass
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
Theme 2 exam Questions and Answers
100% Pass
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
