Stuff Flashcards
Knowledge, Strength, Integrity
Dividends
A percentage of a company’s profits that’s paid out to shareholders as reward for investing in the company.
Subsides
A direct or indirect payment given to individuals or firms, usually in the form of cash by the government.
Limited liability
A legal protection where owners and shareholders have no personal responsibility for their company’s debts and financial losses, personal assets cannot be seized.
Unlimited liability
When the owners and partners of a business assume full legal responsibility for its debts and financial losses.
Public limited company (plc)
A company that is able to offer its shares to the public on the stock exchange, managed by its directors and owned by shareholders.
Private limited company (ltd)
An organisation owned by its shareholders who have limited liability and share in profits. Does not publicly trade shares and is limited to a maximum of 50 shareholders.
Liquidity
The efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price
Market Liquidity
How quickly an investment can be sold.
Financial Liquidity
The ability to meet financial obligations.
Cash Flow
A measurement of the amount of cash that comes into and out of your business in a particular period of time.
Fixed Costs
Expenses that remain the same no matter the change in output. E.g Rent, Salaries, Insurance
Variable Costs
Expenses that change in proportion to production or sales volume (output). E.g Raw Materials, Wages, labour costs
Market Share
The share of the total market that is owned by a particular business, product or brand. Usually expressed as a %. The firm with the largest percentage market share is known as the market leader.
Opportunity cost
The cost of a decision as measured by the benefits foregone of the next best alternative.
Profit
The difference between total sales and total costs.
