Money & finance Flashcards
Business word for money
Finance
Where revenue is more than costs
Profit
Where your costs & revenue are the same
Break even
Where your costs are more than your revenue
Loss
Calculations such as gross profit margin and net profit margins are also called
Profitable ratios
What is revenue
The total finance that you bring in
What is the definition of limited liability?
Where the bank can only take assets that are owned by the business to pay off any debts incurred by the business. This is only for PLC’s and LTD’s.
What is the definition of unlimited liability?
Where the bank can seize personal assets to pay off any debts incurred by the business. This is only for partnerships and sole traders.
What is it when a business ‘teams up’ or starts controlling another business.
Merger/takeover
Why might a business not want unlimited liability?
Because they don’t want to risk losing all personal assets.
