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3.1 Introduction to Finance

Finance - the funds or money an organization uses to operate on a day-to-day basis and to provide the resources the business needs for its future development.

Capital expenditure - spending by businesses on assets that can be used to support its operation in the long term, especially significant when the business is being set up or expanding. (Production plant, machineries, equipment, and offices.

Revenue expenditure - spending by businesses on the costs incurred by the business to run day-to-day business. (Raw material costs, wages, administration, marketing, and overheads like heat and light)

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3.1 Introduction to Finance

Finance - the funds or money an organization uses to operate on a day-to-day basis and to provide the resources the business needs for its future development.

Capital expenditure - spending by businesses on assets that can be used to support its operation in the long term, especially significant when the business is being set up or expanding. (Production plant, machineries, equipment, and offices.

Revenue expenditure - spending by businesses on the costs incurred by the business to run day-to-day business. (Raw material costs, wages, administration, marketing, and overheads like heat and light)