IB BUSINESS MANAGEMENT FINANCE |
COMPLETE STUDY GUIDE & PRACTICE
QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Capital wealth in the form of money or other assets owned by a person or organization
or available or contributed for a particular purpose such as starting a company or
investing:
Assets property owned by a person or company, regarded as having value and available
to meet debts, commitments, or legacies
Liabilities a company's financial debt or obligations that arise during the course of its
business operations; settled over time through the transfer of economic benefits
including money, goods or services
Capital Expenditure money spent to acquire items in a business that will last for more than a year and
may be used over and over again
Capital Expenditure money spent to acquire fixed assets in a business
fixed assets type of capital expenditure that includes machinery, land, buildings, vehicles, and
equipment; can be used as collateral because of their high fixed costs
Revenue Expenditure money spent on the day-to-day running of a business; include payments or
expenses such as rent, wages, raw materials, insurance, and fuel
, Revenue Expenditure money used in the day-to-day running of a business
Collateral financial security pledged for repayment of a particular source of finance such as
bank loans
internal sources of finance this can include: personal funds, retained profit, and the sale of assets
Personal funds an internal source of finance that comes from personal savings; it is cheap and
easily available because there is no interest to be paid; it can prove difficult
because of the risk of possibly investing life savings or needing more than what
this source can offer; a source of finance for sole traders that comes mostly from
their personal savings
Retained profit (earnings) an internal source of finance; profit that remains after a business has paid
corporation tax to the government and dividends to shareholders; also known as
ploughed-back profit to be reinvested into the business
Sale of assets an internal source of finance that happens when a business sells off its unwanted
or unused assets to raise funds
external sources of finance This can include: share capital, loan capital, overdrafts, trade credit, grants,
subsidies, debt factoring, leasing, venture capital, and business angles
COMPLETE STUDY GUIDE & PRACTICE
QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Capital wealth in the form of money or other assets owned by a person or organization
or available or contributed for a particular purpose such as starting a company or
investing:
Assets property owned by a person or company, regarded as having value and available
to meet debts, commitments, or legacies
Liabilities a company's financial debt or obligations that arise during the course of its
business operations; settled over time through the transfer of economic benefits
including money, goods or services
Capital Expenditure money spent to acquire items in a business that will last for more than a year and
may be used over and over again
Capital Expenditure money spent to acquire fixed assets in a business
fixed assets type of capital expenditure that includes machinery, land, buildings, vehicles, and
equipment; can be used as collateral because of their high fixed costs
Revenue Expenditure money spent on the day-to-day running of a business; include payments or
expenses such as rent, wages, raw materials, insurance, and fuel
, Revenue Expenditure money used in the day-to-day running of a business
Collateral financial security pledged for repayment of a particular source of finance such as
bank loans
internal sources of finance this can include: personal funds, retained profit, and the sale of assets
Personal funds an internal source of finance that comes from personal savings; it is cheap and
easily available because there is no interest to be paid; it can prove difficult
because of the risk of possibly investing life savings or needing more than what
this source can offer; a source of finance for sole traders that comes mostly from
their personal savings
Retained profit (earnings) an internal source of finance; profit that remains after a business has paid
corporation tax to the government and dividends to shareholders; also known as
ploughed-back profit to be reinvested into the business
Sale of assets an internal source of finance that happens when a business sells off its unwanted
or unused assets to raise funds
external sources of finance This can include: share capital, loan capital, overdrafts, trade credit, grants,
subsidies, debt factoring, leasing, venture capital, and business angles
