Topic 1.3 Putting a business idea in practise Flashcards
Financial Objectives
Targets expressed in money terms such as making a profit, earning income or building wealth.
Revenues/Turnover
The amount of income earned through sales.
Sales Volume
The number of items or products or services sold by a business over a period of time
Net cash flow
The receipts of a business minus its payments
Cash flow forecast
A prediction of how cash will flow through a business in a period of time in future
Cumulative cash flow
The sum of cash that flows into a business over time
Trade credit
Where a supplier gives a customer a period of time to pay a bill for goods or services once they have been delivered.
Share
A part ownership in a business
Share Capital
The monetary value of a company which belongs to its shareholders
Venture capitalist
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 of a profit
Security
Assets owned by a business which are used to guarantee repayments of a loan; if the business fails to pay off the load, the lender can sell what has been offered as security.
Morgtage
A loan where property is used as security.
Dividend
A share of the profits of a company received by shareholders who own shares.
Factoring
A source of finance where a business is able to receive cash immediately for the invoices it has issued from a factor, such as a bank, instead of waiting the typical 30 days to be paid.
