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Business Management 3.1 Key Terms Business angels are wealthy entrepreneurs who risk their own money by investing in small to medium-sized businesses that have high growth potential Capital expenditure is investment spending on fixed assets such as the purchase of land and buildings. Debt factoring is a financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee. External sources of finance means getting funds from outside the organization. Grants are government financial gifts to support businesses activities. Initial public offering (IPO) refers to a business converting its legal status
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