Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
39 Cards in this Set
- Front
- Back
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial objectives
|
Targets expressed in money terms such as making a profit earning income or building wealth
|
|
|
Fixed costs
|
Costs which do not vary with the output produced such as rent business rates advertising costs and salaries
|
|
|
Variable costs
|
Costs which change directly with the number of products made by a business such as the cost of buying raw materials
|
|
|
Total costs
|
Total costs are fixed costs plus variable costs
|
|
|
Sales revenue
|
The amount of income received from selling goods or services over a period of time
|
|
|
Sales volume
|
The number of items/products/services sold by a business over a period of time
|
|
|
Profit
|
Occurs when the revues of a business are greater than its costs over a period of time
|
|
|
Loss
|
Occurs when the revenues of a business are less than its costs over a period of time
|
|
|
Cash
|
Notes coins and money in the bank
|
|
|
Insolvency
|
When a business can no longer pay its debts
|
|
|
Cash flow
|
The flow of cash into and out of a business
|
|
|
Inflow
|
The cash flowing into a business its receipts
|
|
|
Outflow
|
The cash flowing out of a business its payments
|
|
|
Cash flow
|
forecast A prediction of how cash will flow through a business in a period of time in future
|
|
|
Net cash
|
flow The receipts of a business minus its payments
|
|
|
Opening balance
|
The amount of money in a business at the start of a month
|
|
|
Closing balance
|
The amount of money in a business at the end of a month
|
|
|
Cumulative cash flow
|
The sum of cash that flows into a business over time
|
|
|
Trade credit
|
Where a supplier gives a customer a period of time to pay a bill for goods or services once they have been delivered
|
|
|
Stocks
|
Materials that a business holds for example raw materials or finished goods
|
|
|
Business plan
|
A plan for the development of a business giving forecasts of items such as sales costs and cash flow
|
|
|
Long-term finance
|
Sources of money for businesses that are borrowed or invested for more than a year
|
|
|
Short-term finance
|
Sources of money for businesses that have to be repaid either immediately or within a year
|
|
|
Share
|
A part ownership in a business
|
|
|
Personal savings
|
Money that has been set aside and not spent by individuals and households
|
|
|
Share capital
|
The monetary value of a company which belongs to its shareholders
|
|
|
Shareholders
|
The owners of a company
|
|
|
Venture capitalist
|
An individual or company which buys shares in what they hope will be a fast growing company
|
|
|
Loan
|
Borrowing a sum of money which has to be repaid with interest over a period of time
|
|
|
Security (collateral)
|
Assets owned by a business which are used to guarantee repayments of a loan if the business fails to pay off the loan the lender can sell what has been offered as security
|
|
|
Mortgage
|
A loan where property is used as security
|
|
|
Dividend
|
A share of the profits of a company received by shareholders who own shares
|
|
|
Retained profit
|
Profit which is kept back in the business and used to pay for investment in the business
|
|
|
Leasing
|
Renting equipment or premises
|
|
|
Overdraft
|
Borrowing money for a bank by drawing more money than is actually in a current account. Interest is charged of the amount overdrawn
|
|
|
Factoring
|
A source of finance where a business is able to receive cash immediately for the invoices it has issued from a factor such as a bank instead of waiting 30 days to be paid
|
