Table of contents:

3.1 What is finance

the financial resources used by business organizations to cover their financial needs → without money, businesses cannot operate

When might a business need finance?

1. when it is starting up
2. when it needs to buy equipment or premises
3. when it wants to expand into a new location → market development and diversification (Ansoff matrix)

What are the main uses of finance?

<aside> 💡 There are 2 main ways in which financial resources can be used:

1. capital expenditure
2. revenue expenditure

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1) Capital expenditure