Finance Doc

1. DON'T CALL THEM MONEY!
It is very common for some pupils to wrongly use the word
MONEY in their answers. Money is not an accurate business
word. In actual fact the word MONEY could describe any of
the following:
1- capital;
2- finance;
3- profit;
4- tax;
5- loan;
6- grant;
7- interest;
8- credit;
9- dividends;
10-wages;
11-overdraft;
12-revenue;
13-cash.
In this activity you are going to learn:
1. how to use accurate business words to describe money;
2. the difference between different business concepts
which could be described as money.
Task
In this task you have to find out the best business word
from the list above which would describe the word Money in
each of the following situations.
Situation one
The owner's Money, which is contributed into a business,
could be considered as internal source of finance.
The word “Money” could be replaced with...........

2. Situation two
There are two main methods of raising Money for a
business, internal and external.
The word “Money” could be replaced with...........
Situation three
The main objective for a business in the privates sector
is to make money.
The word “Money” could be replaced with...........
Situation four
One of the methods of Raising finance for a business is to
get Money from a bank or building society.
The word “Money” could be replaced with...........
Situation five
Getting Money from the central or local government could
be one of the methods to raise finance for small
businesses.
The word “Money” could be replaced with...........
Situation six
If you get a loan from a bank or a building society you
have to pay Money.
The word “Money” could be replaced with...........
Situation seven
Capital as a factor of production is rewarded with Money.
The word “Money” could be replaced with...........
Situation eight
Shareholders get at the end of the financial year Money as
a reward for investing into the company.
The word “Money” could be replaced with...........
Situation nine

3. The owner of a business (entrepreneur) pays labour Money
for hiring their skills.
The word “Money” could be replaced with...........
Situation ten
At the end of the every month employees in a business get
paid Money.
The word “Money” could be replaced with...........
Situation eleven
The government takes Money from employees’ salaries or
workers wages at the end of every month.
The word “Money” could be replaced with...........
Situation twelve
If a business makes profit it has to pay Money to the
government.
The word “Money” could be replaced with...........
Situation thirteen
Any business has to generate enough Money to cover its
costs to be able to break even.
The word “Money” could be replaced with...........
Situation fourteen
Any business needs Money for the day to day running of the
business.
The word “Money” could be replaced with...........
Situation fifteen
Roberts Trading Ltd has arranged with Lloyds Bank to
have Money for only 48 hours to pay suppliers.
The word “Money” could be replaced with...........

4. Situation sixteen
The entrepreneur of a business pays the owner of the
land Money for hiring the land.
The word “Money” could be replaced with...........