Finance Flashcards
What is the purpose of a financial business?
Purely to gain money
What is the purpose of a non financial business?
Personal reasons, workers don’t like their current jobs and want to become a business owner
What are financial goals?
To make profit
Wealth
Financial security
Survival
What are some non financial goals?
To become your own manager
Personal satisfaction
Challenge
To help others
What is cash flow?
The total amount of money going in and out of a business
What is revenue?
The income earned by a business over a certain period of time, e.g. One month
What is profit?
A financial gain - the difference between the amount earned and the amount spent in buying, operating or producing something
What are costs?
An amount that has to be paid or spent to buy or obtain something
What is a business plan?
A set of achievements made my a business or entrepreneur and how they intend to meet them
What is a cash flow statement?
A table or chart consisting of all the revenue and costs coming in and out of a business
What is a dividend?
A sum of money paid regularly (typically annually) by a companies profits
What is a share?
A portion of a large amount of money which is divided amongst a number of people
What is retained profit?
The money kept in a business rather than being paid out (as a dividend for example)
What is leasing?
A grant on a property in a form of a ‘let’
What is factoring?
When a company sells all their invoices to another company
