Defenitions Theme 2

Question 1

Working capital

Answer 1

The finance available for the day to day running of the business

Question 2

Over trading

Answer 2

Using overdraft and loans to much

Question 3

Angel investors

Answer 3

Anonymous investors investing in failing businesses

Question 4

Sole trader

Answer 4

1 owner unlimited liability

Question 5

Partnership

Answer 5

2-20 owner’s unlimited liability

Question 6

Private limited company (ltd)

Answer 6

Shares sold privately limited liability

Question 7

Public limited company (plc)

Answer 7

Shares sold publicly limited liability

Question 8

Floatation

Answer 8

When a business initially moves onto the stock market (IPO initial public offering)

Question 9

Sales forecasting

Answer 9

Predicting of future sales volume and trends

Question 10

Moving average

Answer 10

Takes a data source and smoothes out the fluctuations

Question 11

Breakeven

Answer 11

The point at which a business is not making a profit or loss

Question 12

Budget

Answer 12

A financial plan for the future concerning the revenues and costs of a business

Question 13

Historical budget

Answer 13

Look at the spending in the year before to decide

Question 14

Zero based budget

Answer 14

Budget set at zero based on new proposals

Question 15

Income statement

Answer 15

Measures the businesses performance over a given period

Question 16

Statement of financial position

Answer 16

A snapshot of the businesses asset

Question 17

Creditor

Answer 17

Someone who lends you money

Question 18

Debtor

Answer 18

Someone who owes money to a creditor

Question 19

What does PESTLE stand for?

Answer 19

Political
Economical
Social
Technological
Legal
Environmental/ethical

Question 20

Aggregate

Answer 20

Total for a country