Finance Flashcards
1
Q
cash flow forcast
A
written plan used to predict how much money the business plan will receive and spend in the future
2
Q
dealing with an expected deficit
A
increase cash receipts -sell investments -have a sale -use better credit control methods decrease cash payments -hire purchase/leasing instead of buying -cutback in expenses -reduce dividends
3
Q
why prepare a cashflow forcast
A
advance notice of a deficit/surplus
compare to actual receipts/payments- did it meet a target
to show the bank the finances of a business are properly managed - for a loan
4
Q
household budget
A
list of the money they expect to make and the money they plan to spend
5
Q
short term sources of finance
A
household -bank overdraft -accrued expenses -credit card business -bank overdraft -accrued expenses -trade credit -factoring
6
Q
medium term sources of finance
A
household -hire purchase -leasing -personal loan business -hire purchase -leasing -term loan
7
Q
long term sources of finance
A
household -mortgage -savings business -debentures -retained earnings -grants -equity capital
8
Q
factors to consider when choosing
A
cost purpose security tax control
9
Q
to qualify for a loan
A
purpose ability to pay security credit history business plan
10
Q
household vs business management
A
similarities -budgeting -raising finance -have control -communicate differences -tax -size -mission -manpower planning
