Question

(b) Capital Expenditure and Revenue Expenditure
(c) Advertising and Sales Promotion
(d) Shares and Debentures
(e) Internal and External Stakeholders​

Answer 1

Answer:

b) Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.

c) Advertising is a permanent strategy that involves marketing and sales, whereas sales promotions have a limited time frame. Different end goals. Advertising appeals to the wants and needs of a target audience, and seeks to persuade prospective customers that your company is worthy of their attention.

d) Debentures and shares are both used by a company to raise capital funds from the market. But they are very different in their characteristics. A debenture is a debt tool – the funds raised are considered loans to the company. But shares allow you ownership in the company.

e) Understanding Stakeholders

Internal stakeholders are people whose interest in a company comes through a direct relationship, such as employment, ownership, or investment. External stakeholders are those who do not directly work with a company but are affected somehow by the actions and outcomes of the business.