key terms Flashcards
Gearing
Gearing is the amount of debt that a company uses it funds it’s operation.
( money borrowing )
Investment appraisals
A process of analysing whether an invetsment project is worthwhile or not.
Net gain
Net gain is the financial gain after initial costs of the decision have been subtracted.
Niche market
Small businesses don’t have to compete directly with a larger business ( who don’t nromslly tager niche market)
Net gain
The financial gain after initial costs of the decision have been subtracted.
Net gain= EV - initial costs
Net profit
a company’s total earnings after subtracting all expenses
Gross profit
The selling price of your product minus the cost of producing it.
Gross profit margin
The profit after subtracting the costs of goods sold