1.3 Putting A Business Idea Into Practice Flashcards
1
Q
Cash flow
A
Clash flow is the movement of cash into and out of the business over a period of time
2
Q
Profit
A
Profit is the surplus money made by a business when revenue exceeds cost
3
Q
Insolvency
A
Can occur when a business does not have enough cash to pay its debts by there due dates
4
Q
Cash
A
Without cash a business can not survive in the medium to long run
5
Q
Without cash you cant pay for..
A
Suppliers Pay overheads such as lighting and heating Pay employees Buy new stock or raw materials Market it's product
6
Q
Cash flow problems exist when…
A
A business have a negative balance at the end of a set time
7
Q
Cash flow forecast
A
The process of predicting the future of cash inflows and outflows
