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剑桥商务英语2 Business finance
Business finance Capital1. Financial assets or the financial value of assets, such as cash. 2. The factories, machinery and equipment owned by a business. Capital is an extremely vague term and its?specific definition depends on the context in which it is used. In general, it refers to financial resources available for use. Revenue The amount of?money?that a company actually receives?during a specific period, including discounts and deductions for?returned merchandise. It is the top line?or?gross income?figure from which costs are subtracted to determine net income. Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.Revenue is also?known as?REVs. Revenue is the amount of money that?is?brought into a company by its business?activities.?In the case of government, revenue is the money received from taxation, fees, fines, inter-governmental grants or transfers, securities sales, mineral rights and resource rights, as well as any sales?that are made. Business finance A Capital When people want to set up or start a company, they need money, called capital. Companies can borrow this money, called a loan,from banks. The loan must be paid back with interest: the amount paid to borrow the money. Capital can also come from issuing shares or equities - certificates representing units of ownership of a company. (See Unit 29) The people who invest money in shares are called shareholders and they own part of the company. The money they provide is known as share capital. Individuals and financial institutions, called investors, can also lend money to companies by buying bonds -loans that pay interest and are repaid at a fixed future date. (See Unit 33) Money that is owed - that will have to be paid - to other people or businesses is a debt In accounting, companies,debts are usually called liabilities. Long-term liabilities include bonds; short-term liabilities include debts to suppliers who provide
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