Business A-Level
equity
What equity means in Business A-Level, as defined for AQA.
Definitions of equity
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain equity in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A long-term source that fits a machine which will run for a decade, alongside a loan spread across the life of the asset.
Ownership finance that never has to be repaid, which is its attraction for the business.
Topics that use equity
- Making financial decisions: sources of finance (AQA A-Level)
- Understanding different business forms (AQA A-Level)
Related terms
- corporate objectives
- debt factoring
- equity finance
- limited liability
- market expectations
- overdraft
- retained profit
- social enterprise
Using equity in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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