edexcel a level business paper 2 Save

Edexcel A Level Business - Theme 2:
Managing Business Activitiesw With
Valid Detailed Answers

Source wof wfinance w- wCORRECT✅✅A wsource, weither wwithin wor woutside wof wa
wbusiness, wfrom wwhich wa wbusiness wcan wget waccess wto wmoney


Internal wsource wof wfinance w- wCORRECT✅✅A wsource wof wfinance wthat wcomes
wfrom wwithin wa wbusiness


Personal wfunds w- wCORRECT✅✅An winternal wsource wof wfinance wwhere wthe
wbusiness wowner's wpersonal wwealth wis wused win wthe wbusiness


Retained wprofit w- wCORRECT✅✅An winternal wsource wof wfinance wwhere wthe
wprofits wfrom wthe wprevious wyear ware wused win wthe wbusiness


Sale wof wassets w- wCORRECT✅✅An winternal wsource wof wfinance wwhere wthe
wbusiness wsells wassets wthat wthey wown w(buildings, wvehicles, wequipment) wto wraise
wmoney


External wsource wof wfinance w- wCORRECT✅✅A wsource wof wfinance wthat wcomes
wfrom woutside wof wthe wbusiness


Loan wcapital w- wCORRECT✅✅An wexternal wsource wof wfinance wwhere wthe
wbusiness wborrows wmoney wfor wan wagreed wlength wof wtime


Overdraft w- wCORRECT✅✅An wexternal wsource wof wfinance w(loan wcapital) wwhere
wa wbusiness wis wable wto wgo winto wan wagreed wnegative wbalance won wtheir wcurrent
waccount. wThis wis wa wshort wterm wmeasure


Bank wloan w- wCORRECT✅✅An wexternal wsource wof wfinance w(loan wcapital) wwhere
wa wbusiness wborrows wan wagreed wamount wof wmoney wfrom wa wbank, wbut wmust wpay
wback winterest


Share wcapital w- wCORRECT✅✅An wexternal wsource wof wfinance wwhere wa
wbusiness wsells wa wshare win wthe wbusiness win wexchange wfor wmoney


Venture wcapitalist w- wCORRECT✅✅An winvestor wor wbusiness wspecialist wwho
wseeks wto winvest win wbusinesses wthey wfeel wcan wmake wthem wa wprofit

, Leasing w- wCORRECT✅✅Where wa wbusiness wrents wthe wuse wof wsomething
w(buildings, wvehicles, wequipment) wfor wa wmonthly wfee wfor wa wfixed wperiod wof wtime


Government wgrants w- wCORRECT✅✅Where wa wbusiness wreceives wan wamount wof
wmoney wfrom wGovernment wfor wa wspecific wpurpose. wThese ware wusually wprovided
wwhen wGovernment wbenefits wfrom wthe woperation wof wthe wbusiness.


Trade wcredit w- wCORRECT✅✅Where wa wbusiness wis wgiven wa wperiod wof wtime wto
wpay wfor wsomething, weffectively wreceiving wa wloan wof wthe witems wwith wpayment wat
wa wlater wdate. wThis wis woften w30 wdays


Debentures w- wCORRECT✅✅A wlong wterm wsource wof wfinance wwhere wa wbusiness
wtakes wout wa wlong-term wloan wfrom wanother wcompany


Crowdfunding w- wCORRECT✅✅An wexample wof wpeer wto wpeer wfunding wwhere wa
wbusiness wcan wraise wmoney wfrom wa wlarger w"crowd" wof winvestors, wwho weach wtake
wa wsmall wstake wthrough wcontributing wa wsmall wamount weach


Working wcapital w- wCORRECT✅✅The wmoney winvested winto wa wbusiness wfor wuse
win wday wto wday woperations. wUsually wcalculated wby wcurrent wassets w- wcurrent
wliabilities.


Short wterm wfinance w- wCORRECT✅✅Finance wavailable wfor wthe wnext w12 wmonths

Medium wterm wfinance w- wCORRECT✅✅Finance wavailable wfor wbetween w1 wand w5
wyears


Long wterm wfinance w- wCORRECT✅✅Finance wavailable wfor wmore wthan w5 wyears

Unlimited wliability w- wCORRECT✅✅Where wthe wowner wof wa wbusiness wis wliable wfor
wall wdebts wof wthe wbusiness. wThis wis wthe wcase wfor wunincorporated wbusinesses


Limited wliability w- wCORRECT✅✅Where wthe wbusiness wis wonly wliable wfor wdebts
wup wto wthe wvalue wof wthe wassets wand wcapital wof wthe wbusiness. wThis wis wthe wcase
wfor wincorporated wbusinesses


Business wplan w- wCORRECT✅✅A wdocument wsetting wout wthe wformat wof wthe
wbusiness widea, wincluding wprojected waims, wobjectives, winformation won wthe
wproduct/service wand wfinance wprojections


Business wmodel w- wCORRECT✅✅The wplan wimplemented wby wa wcompany wto
wgenerate wrevenue wand wmake wa wprofit wfrom woperations


Cash wflow w- wCORRECT✅✅The wmoney wthat wcomes win wto wand wout wof wa
wbusiness