| A | B |
|---|
| Dividend | a share of the profits of a company received by people who own shares |
| Equity capital | the monetary value of the company. This would be the value of the shares |
| Ordinary shares | shares in a limited company where the company can vary the amount of dividend paid to shareholders depending on profit made |
| Preference shares | shares in a limited company where shareholders receive a fixed amount in £'s each year. A company can choose not to pay pay a dividend in any one year if it feels it has not made enough profit |
| Retained profit | profit which is kept back by a business and used to pay for investment in the business |
| Venture capital | money which is used by a venture capitalist to buy a share of what is hoped to be a growing business |
| Internal & External sources of capital | Finance which is obtained from within the business (internal) and outside (external) |
| Acid test ratio | current assets minus stock to current liabilities |
