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Unit 5 - Finance Management - Coggle Diagram

- - - - Types of capital: start-up capital: initial amount of money invested in the company / working capital: money needed for everyday work (raw materials, wages, etc)
      - Internal finance: comes from the company’s assets or profits - personal funds: money comes from the owner / retained profits: money from profits, not revenues /sale of assets: selling fixed assets to become liquid
        
        Special sources of finance: grants: money given by the government or independent agencies / venture capital: money given to startups or companies not in the stock exchange / business angels: a wealthy entrepreneur that helps others to start their business / subsidies: money given by the government to support business activities that need help or of public interest
- - - - Total revenue: total amount of money received from sales, sales revenue or turnover: Total revenue (TR) = Price per unit (P) x Quantity sold (Q)
      - Other revenue streams: rental income / sale of fixed assets / dividends / interest on deposits / donations / grants and subsidies