Business Funding Flashcards
Vocabulary
What is Revenue?
The total amount of money brought in by a company’s operations, measured over a set amount of time.
What is a Budget?
A plan for expected income and expenses over a period.
What is Capital?
Money or resources a business uses to fund its operations or growth.
What is Profit?
The amount of money a business has after all expenses are paid.
What is Gross profit?
Revenue minus the cost of goods sold (COGS).
What is Net profit?
The final profit after all expenses, taxes, and costs are subtracted.
What are Overheads?
Ongoing expenses that are not directly tied to production (rent, insurance).
What is Interest?
The cost of borrowing money, typically expressed as a percentage.
What are Expenses?
The costs incurred by a business to operate (rent, wages, utilities).
What is an Investment?
Money put into a business with the expectation of earning a return.
What are Assets?
Items of value owned by the business (cash, equipment, inventory).
What is a Return on investment (ROI)?
A measure of how much profit or cost savings is realesed from an investment.
What are Liabilities?
Debts or obligations the business owes (loans, accounts payable).
What is an Inventory?
The goods and materials a business holds for sale.
What are Accounts receivable?
Money owed to the business by customers for sales made on credit.
