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Business Finance
Junior Cert Business Studies
Term | Definition |
---|---|
Current Expenditure | is spending on the on-going or repetitive costs of running a business. |
Capital Expenditure | is spending on fixed assets. |
Medium-term Expenditure | is spending on assets that will have to be replaced within the foreseeable future,normally within a 3- to - 5 year period. |
Long-Term Expenditure | is spending on assets that the firm does not intend to replace in the foreseeable future |
Factoring | means a business passes on (sells), at a discount, the debts owed to it, in exchange for immediate cash. |
A Debenture | is a certificate acknowledging the existence of a debt. It is normally issued in the case of a long-term loan secured against the assets or an asset of a business. |
Sale and leaseback | occurs when a firm sells a fixed asset to a finance company and then leases the asset from it over a long-term agreement. |