Putting a business idea into practice Flashcards
What is a financial objective
Targets expressed in money terms such as making a profit, earning income or building wealth.
What does SMART stand for
Specific, measurable, achievable, realistic and timed
What is another word for Revenue
Sales Revenue
Turnover
Sales Turnover
Define “The amount of income received from selling goods or services over a period of time “
Revenues
Sales Revenue
Turnover
Sales Turnover
What is the formula for total revenue (not in symbols)
Total Revenue = Price x Quantity
what is the formula for total revenue in symbols
TR = P x Q
What is sales Volume
The number of items or products or services sold by a business over a period of time.
What the difference between fixed and variable cost
Fixed cost- Costs which do not vary with the output produced such as rent, business rates, advertising costs, administration costs and salaries.
Variable costs-Costs which change directly with the number of products made by a business such as the cost of buying raw materials.
What is the formula for total cost
TC = FC + VC
Total Costs = Fixed Costs + Variable Costs
What is the total cost
All the costs of a business; it is equal to fixed costs plus variable costs.
What is profit
Occurs when the revenues of a business are greater than its costs over a period of time.
How do you find out the total cost using profit and total revenue
TR-P=TC
What is Cash flow
The flow of cash into and out of a business
What is the difference between cash outflow and inflow
Inflows-The cash flowing into a business, its receipts
outflows- The cash flowing out of a business, its payments
What is net cash flow
The receipts of a business minus its payments
How do you you find outflows by using net cash flow and inflows
Inflows-Net cash flow=Outflows
what do you call it when a business can’t pay it dept
Insolvency
What is a business amount of money at the start of a month
Opening Balance
What is the amount of money at the end of the month
Closing balance
Which of these is not an example of short term finance(there is 2) loans mortgage personal savings overdraft
Mortgage and owners savings
Which of these is an example of an external source of fiance Retained profit Selling Assets Personal savings Factoring
Factoring
What is the owner/s of the business called
Shareholdes
Define “An individual or company which buys shares in what they hope will be a fast growing company with a long term view of selling the shares at a profit. “
venture capitalist
Define “Assets owned by a business which are used to guarantee repayments of a loan; if the business fails to pay off the loan, the lender can sell what has been offered as security. “
Security
What is a dividend
A share of the profits of a company received by shareholders who own shares.
Which of these don't charge interest Loans Mortgage Leasing Overdraft
Leasing
