THEME 2 DEFINITIONS Flashcards
SOURCES OF FINANCE
PLACES WHERE GAIN FINANCE
COLLATERAL
SOMETHING OF VALUE AS SECURITY
UNABLE TO PAY LOANS ASSET TRANSFERRED
BUSINESS ANGELS
INVEST IN EARLY STAGES OF BUSINESS
TAKE SIGNIFICANT EQUITY
CROWDFUNDING
EXTERNAL FINANCE FROM SMALL INVESTMENTS
WEB BASED APPEAL FOR INVESTORS
METHOD OF FINANCE
PROCESS THROUGH WHICH A SOURCE OF FINANCE PROVIDES MONEY TO A BUSINESS
VENTURE CAPITAL
METHOD OF PROVIDING FINANCE
HIGHER RISK INVESTMENT (LOANS AND SHARES)
OVERDRAFT
CONTINUE SPENDING EVEN WITH -VE ACCOUNT
AGREED LIMIT
LEASING
ASSET RENTED FOR MONTHLY FEE FOR SET PERIOD
TRADE CREDIT
GOODS/SERVICE PROVIDED BUT NOT PAID FOR IMMEDIATELY
LIQUIDATION
COMPANY’S OWNERS CLOSE DOWN COMANY
SELLING ASSETS = CASH = PAY DEBTS
BUSINESS PLAN
DOCUMENT SETTING OUT BUSINESS IDEA
HOW IT WILL BE FINANCED, MARKETED AND PUT INTO PRACTICE
TREND
GENERAL PATH VARIABLE TAKES OVER TIME PERIOD
BREAK EVEN
BUSINESS SELLING ENOUGH TO COVER COSTS WITHOUT MAKING PROFIT
MARGIN OF SAFETY
HORIZONTAL DISTANCE BETWEEN ACTUAL OUTPUT AND BREAK EVEN OUTPUT
OVERHEAD COSTS
INCURRED AS A WHOLE
DIFFICULT TO ATTRIBUTE TO PARTICULAR SECTION OF BUSINESS
BUDGET
TARGET FOR REVENUE OR COSTS FOR FUTURE TIME PERIOD
FINANCIAL PLAN FOR FUTURE COSTS AND INCOMES
VARIANCE ANALYSIS
-LOOKING BACK TO CALCULATE DIFFERENCE BTWEEN BUDGETED FIGURE AND ACTUAL FIGURE
PROFIT
DIFF IN REVENUE OF BUSINESS AND COSTS GENERATED DURING PERIOD OF TIME
COST OF SALES
COSTS DIRECTLY ASSOCIATED WITH MAKING PRODUCT
FIXED OVERHEADS
COSTS PAID NO MATTER PERFORMANCE
NET FINANCING COST
INCOME FROM INTEREST ON BANK DEPOSITS - INTEREST CHARGES FROM OVERDRAFTS&LOANS
(-VE NUMBER)
STATEMENT OF COMPREHENSIVE INCOME
DOCUMENT FROM PLC
SHOW REVENUE
DIFFERENT COSTS AND DIFFERENT PROFITS FOR A YEAR
PROFITABILITY
PROFIT AS A % OF SALES REVENUE
LIQUIDITY
ABILITY OF BUSINESS TO FIND CASH TO PAY BILLS READILY AVAILABLE (BANK OR CUSTOMER PAYMENT)
CURRENT ASSETS
BUSINESS OWNS IN FORM OF CASH OR EASILY INTO CAHS WITHOUT MAJOR LOSS IN VALUE
- CASH
- MONEY OWED BY CUSTOMERS
- STOCK
CURRENT LIABILITIES
DEBTS OWED PAID WITHIN NEXT 12 MONTHS
- TRADE DEBTORS
- OVERDRAFT
FIXED ASSETS
ITEMS OWNED
USE OVER AND OVER = PROFIT
- PROPERTY
- MACHINERY
WORKING CAPITAL
MONEY AVAILABLE FOR DAY TO DAY RUNNING OF BUSINESS
JOB PRODUCTION
ONE-OFF ITEMS TO SUIT INDIVIDUAL CUSTOMER REQUIREMENTS
BATCH PRODUCTION
GROUP OF PRODUCTS ONE SPECIFICATION AT A TIME
SOME VARIATION AND SOME SPECIALISATION
FLOW PRODUCTION
CONTINUOUS PRODUCTION OF SINGLE STANDARDISED PRODUCT (AUTOMATION - WITH MACHINES)
CELL PRODUCTION
ORGANISE WORKERS INTO SMALL GROUPS
PRODUCE RANGE OF DIFFERENT PRODUCT QUICK
PRODUCTIVITY
EFFICIENCY OF PRODUCTION PROCESS
OUTPUT PER WORKER PER TIME PERIOD
EFFICIENCY
EXTENT TO WHICH RESOURCES USED IN PROCESS GENERATE OUTPUT WITHOUT WASTAGE
CAPACITY
MAXIMUM POSSIBLE OUTPUT OF BUSINESS
CAPACITY UTILISATION
PROPORTION OF MAXIMUM CAPACITY BEING USED
STOCK/INVENTORY
NAME GIVEN TO MATERIALS
PARTIALLY MADE
FINISHED GOODS OWNED BY BUSINESS NOT SOLD
JUST IN TIME STOCK MANAGEMENT
JAPANESE APPROACH
STOCK MANAGEMENT
AIMS TO ELIMINATE BUFFER STOCK
WASTE MINIMISATION
ASPECT OF LEAN PRODUCTION
FOCUS ON REDUCING WASTE IN BUSINESS PROCESS
TIME, LABOUR, MATERIALS
LEAN PRODUCTION
COLLECTIVE TERM FOR RANGE OF JAPANESE TECHNIQUES TO ELIMINATE WASTE FROM PROCESSES
QUALITY CIRCLE
GROUP OF STAFF WHO MEET REGULARLY TO FIND QUALITY IMPROVEMENTS
