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IB Business & Management 3.1 & 3.2

Horizontales
When a business sells off its unwanted or unused assets to raise funds
Profit that remains after a business has paid corporation tax to the government and dividends to shareholders
Money sourced from financial institutions such as banks, with interest charged on the loan to be repaid
Money spent to acquire fixed assets in a business
A financial arrangement where the debt factor takes on responsibility for collecting the debt owed to the business and provides the business with a percentage of the owed debt in cash
Highly affluent individuals who provide financial capital to small start-ups or entrepreneurs in return for ownership equity in their businesses
A source of finance that allows a firm to use an asset without having to purchase it by cash
Verticales
When a lending institution allows a firm to withdraw more money than it currently has in its account
Financial capital provided by investors to high-risk, high-potential start-up firms or small businesses
Money used in the day-to-day running of a business
Money raised from the sale of shares of a limited company
A source of finance for sole traders that comes mostly from their own personal savings
Financial assistance granted by a government, an NGO, or an individual to support business enterprises that are in the public interest
Funds usually provided by a government, foundation, trust, or other agency to businesses that do not need to be repaid
An agreement between businesses that allows the buyer of goods or services to pay the seller at a later date