Business capital expenditure

Capital expenditure

• Money spent on capital items

• Capital items used to start business, or expand business in future

Non-current assets

• items owned by business that will remain in the business for a year+

Items depreciated

• each year assets are worth less

• For example, buying clothing increases item depreciation

Tangible assets

• psychical assets, will depreciate over time

Intangible assets

• Can’t touch

• however adds value to business

• E.g equipment

What are the intangible assets?

• goodwill - build loyal customer relationships, brand recognition

• Patents - legal protection over invention, form on intellectual property

• Trademark - logo

• Brand recognition - helps strengthen company profile against competitors, also increases value of business /what’s it’s worth by improving business equity

• Intellectual property - legally protected by company from outside use without consent e.g copyrights