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16 Cards in this Set
- Front
- Back
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Adding value |
A process through which a business increases the worth of the resources included in production so that customers perceive the product to be worth more than the cost of the inputs |
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Adviser |
An external contact of a business that provides support and advice, sometimes for free |
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Bank loan |
A fixed amount loan from a bank which is generally used to finance long-term assets |
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Bank overdraft |
Borrowings from a bank on a current account which are payable on demand |
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Breakeven output (or point) |
The point at which the total sales of a business equal total costs -i.e. the business is making neither a profit nor a loss |
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Budget |
A detailed plan of income and expenses expected over a certain period of time |
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Business angel |
A particular type of investor, usually a successful entrepreneur, who is willing to invest in high-risk, high-growth firms at a very early stage |
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Business plan |
A detailed description of a new or existing business, including the company’s strategy, aims and objectives, marketing & financial plan |
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Business objective |
A stated goal or target of a business (note: a business can have more than one objective!) |
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Cash flow |
The movements of cash into (“inflows”) and out of (“outflows”) a business |
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Cash flow forecast |
A projection, usually by week or month, of the likely cash inflows and outflows in a business |
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Contribution |
The difference between total sales and total variable costs |
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Contribution per unit |
A key number for breakeven analysis: the difference between selling price per unit and variable cost per unit. |
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Costs |
Amounts incurred by a business as a result of its trading operations |
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Demand |
The amount of a product or service that customers are willing and able to pay at a given time |
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Demographic |
Defining a market in terms of social-economic factors such as segmentation age, income, class etc |
