KEY WORDS Flashcards
What is break-even?
The point at which the total sales of a business equal total costs- i.e. the business is making neither a profit or loss
What is an adviser?
An external contact of a business who provides support and advice, sometimes for free
What is a budget?
A detailed plan of income and expenses expected over a certain period of time
What is a business angel?
A particular type of investor, usually a successful entrepreneur, who is willing to invest in high‐risk, high‐growth firms at a very early stage.
What is cash flow?
The movement of cash into (inflows) and out of (outflows) a business
What is a cash flow forecast?
A projection, usually by week or month, of the likely cash inflows and outflows in a business.
What is contribution?
The difference between total sales and total variable costs
What are costs?
These are amounts incurred by a business as a result of its trading operations.
What is demand?
The amount of a product or service that customers are willing and able to pay at a given time.
What is demographic segmentation?
Defining a market in terms of social-economic factors such as age, income, class etc
What is Elasticity of demand?
The responsiveness of demand to a change in price or incomes.
What is fixed cost?
Cost that do not vary dependent on the level of output
What is margin safety?
This is the difference between the actual level of output and the break even output
What is profit?
The difference between total sales and total costs
What is a sole trader?
A one-person business with unlimited liability for the debts of that business
