Please enable JavaScript.

Coggle requires JavaScript to display documents.

Component 1- Business Finance - Coggle Diagram

- - - - Capital expenditure: money to pay for fixed assets that business needs before it can begin to trade
        
        Investment capital: money that is available to help a business grow +develop
        
        Working capital: money available on day-to-day basis to pay running costs such as payment of stock or raw materials, wages
- - - - cheaper in short-term than buying piece of equipment outright;
        if technology is changing quickly/ equipment wears out quickly, can be regularly updated/ replaced;
        cash flow management is easier because of regular payments;
        
        more expensive in long term because leasing company charges fees which make total cost greater than original cost