Skip to content

Spec point: GCSE Edexcel – 1.3 Putting a Business Idea into Practice

Every note that covers this specification point.

Finance

Venture Capital

Venture Capital in a Nutshell Venture capital is a form of private equity finance provided to high-potential startups and small businesses by investors or specialist firms. It offers large sums of funding…

Read the note 9 min
Finance

Liquidity

Liquidity in a Nutshell Liquidity refers to how easily a business can convert its assets into cash to meet short-term financial obligations. A highly liquid business holds enough cash or near-cash assets…

Read the note 10 min
Finance

Private Equity

Private Equity in a Nutshell Private equity refers to investment capital provided by firms or funds directly into private companies, or used to take public companies private. It offers businesses large-scale funding…

Read the note 9 min
Finance

Cashflow

Cash Flow in a Nutshell Cash flow is the movement of money into and out of a business over a given period. Positive cash flow means more money is coming in than…

Read the note 10 min
Finance

Business Angel

Business Angel in a Nutshell A business angel is a high-net-worth individual who invests personal funds into early-stage companies in exchange for equity. They typically provide mentoring alongside capital. Key advantages include…

Read the note 10 min
Finance

Bank Loan

Bank Loan in a Nutshell A bank loan is a fixed sum of money borrowed from a bank, repaid over an agreed period with interest. It provides businesses with a lump sum…

Read the note 10 min
Finance

Costs

Costs in a Nutshell Costs are the total expenses a business incurs to produce and sell its goods or services. They include fixed costs such as rent, variable costs such as raw…

Read the note 9 min
Finance

Overdraft

Overdraft in a Nutshell An overdraft is a short-term borrowing facility provided by a bank that allows a business or individual to spend more money than is currently in their account, up…

Read the note 11 min
Finance

Profit

Profit in a Nutshell Profit is the financial surplus remaining after a business deducts all its costs from its total revenue. It is calculated as total revenue minus total costs. Businesses use…

Read the note 9 min
Finance

Share Capital

Share Capital in a Nutshell Share capital is the money a company raises by selling shares to investors. It forms a key source of long-term finance for limited companies, both private (Ltd)…

Read the note 10 min
Finance

Revenue

Revenue in a Nutshell Revenue is the total income a business receives from selling its goods or services before any costs are deducted. It is calculated by multiplying the selling price by…

Read the note 10 min
Finance

Trade Credit

Trade Credit in a Nutshell Trade credit is a short-term financing arrangement where a supplier allows a buyer to receive goods or services now and pay later, typically within 30 to 90…

Read the note 11 min