Keywords

Question 1

What’s an asset?

Answer 1

Anything that is in possession of the business/that the business owns

Question 2

What’s retained profit?

Answer 2

It’s a part of the company’s profit that they keep and can be used for growth, paying off debt or saving for future needs

Question 3

What’s an overdraft?

Answer 3

When you can spend money whilst having none of the bank, repaid in interest and small sums of money

Question 4

What’s crowdfunding?

Answer 4

A way of raising money for your business to take off, through online donations (control is given to the shareholders and you have to give them parts of your profit)

Question 5

What’s a business angel/venture capital?

Answer 5

A business specialist who invests in a (new) business and gets a percentage of the profit in exchange for business expertise/guidance

Question 6

What’s gross profit?

Answer 6

The proof a company makes after deducting the costs associated with making and selling its products of the costs associated with providing its services

Question 7

Cost of sales?

Answer 7

These are the direct costs of supplying the goods or services such as buying raw materials to make the products, packaging costs and energy costs (gas/electricity)

Question 8

Expenses?

Answer 8

The costs that do not change as production increases or decreases. This includes interest laid on loans, insurance and salaries

Question 9

Sales revenue?

Answer 9

The money coming into the business from selling goods/services