Explain the difference between capital and revenue items of expenditure and income P2 Capital Income Capital income is the money invested by owners or investors that fund the setting up of a business. The source of capital income is influenced by the type of business. Sole trader is a business which is owned individually, meaning their capital income comes from their own money (savings) or personal loans. Partnership is when between two and twenty people join to form a business as partners. Each partner should be the source of capital income. Partners of the business share the profit and decisions that need to be made regarding the business. Limited companies get capital income depending on whether they are public or private limited …show more content…
The interest rates on a loan are usually lower than the interest rates of an overdraft. The advantages of a business taking out a loan is that a reasonable amount of money can be borrowed, also a business can be more organised with repayments as they are fixed. Disadvantages of getting a loan from a bank is that the repayments are completely inflexible meaning the business cannot afford to miss any payments. Revenue Income Revenue income is money which is made by the business by selling goods or providing a service. The amount of revenue income depends on what methods the business uses to make money. Sales is one way of making money, this is done by selling goods or services. Sales turnover is determined by the price and the number of customers. Rent received is when a business owns a property, offices, land and charges others to use it and the money they receive from this is their main source of income. Commission received is a percentage paid on a sale to the person or business responsible for making that sale. For example when an estate agent sells a house they would receive a commission on top of their usual wage/ salary. An example of a business making commission would be when they sell a product which is made by another business and take a percentage of the sales price, (e.g. 10-15%). Capital Expenditure Expenditure is the money which a business
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| The customers would be influenced because if the company are financially struggling the customers are there only hope to stay profiting. If the company was to go bust it means customers will no longer be able to shop there. The customers would be an external stakeholder, they can get information by advertisements and even check their annual report on the businesses website.
Telephone – A telephone maintains a few different features rather than just receiving and making calls. At work the phones that we use are often different to
The provision and use of personal protective equipment could include using gloves, glasses, earmuffs, aprons, safety footwear, dust masks.
There are several different types of business ownership which are most commonly used in business’ and company’s today, these include; Co-operative which is a business owned by its employees, Partnership which is a business owned by between 2 and 20 people, Private limited which is a business owner by a small groups of people who have shares and a Public limited business is owned by private individuals by shares bought and sold on the stock market. A charity is a business with the purpose to help the public, the government is a business owned by the government and lastly a sole trader which is a business owned by only one person.
When you develop messages, what factors should you consider as you choose your words? Which considerations do you think are most important? Why?
There are many different paths people can take throughout their lives. In the novel, Fifth Business by Robertson Davies, the main character, Dunstan Ramsey, takes the path of the Canadian hero. There are many different steps to be taken by the hero and Dunstan Ramsey follows his path by completing each step.
• The first thing you need to do is save a copy of this document, either onto your computer or a disk
In this task I’m going to analyse the figures on cash flow that I created in P3 and justify why you think the business might have problems also provide range of solutions.
1. Give an example of a case that would fall under diversity jurisdiction. Explain all of the key elements of such a case.
Please note that this Assessment document has 8 pages and is made up of 7 Sections.
3. For a crime to be committed, the prosecutor must be able to prove a criminal intent and an overt act to carry out that intent. Jack and Mary agreed to rob a series of banks. Prior to beginning their bank robbery spree, they were arrested and charged with criminal conspiracy. What act did Jack and Mary do that justifies a finding that they committed the crime? Explain.
A way of doing this task efficiently would be to keep a log setting out of the roles that you and the other members of the team have within the team in which you are working as a part of.
M1 - Compare the purposes of the different documents used in the selection and recruitment process
M2(Unit 37) - Assess the social implications of business ethics facing a selected business in its different areas of activity