Unit 1 - SLB

Question 0

AGM

Answer 0

Annual General Meeting - this is meeting between the board and the shareholders of company in which company results are presented.

Question 1

Adverse Varience

Answer 1

This is the difference between the budgeted and actual figure which has a negative impact on profit.

Question 2

Articles of Association

Answer 2

A document that specifies the regulations for a company’s operations. The articles of association define the company’s purpose and lays out how tasks are to be accomplished within the organisation, including the process for appointing directors and how financial records will be handled.

Question 3

Assets

Answer 3

These are items which are owned and controlled by the business. They may be used as collateral against a loan.

Question 4

Break - even output

Answer 4

The level of output at which the company is making no profit or loss; where total revenue = total costs.

Question 5

Budgets

Answer 5

This is a financial plan for the medium to long term. Budgets include income, production, expenses and master.

Question 6

Business Angel

Answer 6

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Question 7

Capital Expenditure

Answer 7

This is spending on fixed/non-current assets, for example property, large equipment, vehicles.

Question 8

Cash Flow

Answer 8

The movement of cash in and out of a business over time.

Question 9

Cash flow forecast

Answer 9

The process of estimating the size and timing of cash inflows and outflows within a business.

Question 10

Cash inflows

Answer 10

Receipts of cash into a business

Question 11

Cash outflows

Answer 11

The transfer of cash from a business to another business or individual.

Question 12

Certificate of Incoporation

Answer 12

A legal document relating to the formation if a company or corporation.

Question 13

Contribution

Answer 13

This is the amount that each unit contributes towards covering fixed costs. SP=VC per unit.

Question 14

Cost centre

Answer 14

These are sections of a business that are distinct from others and to which costs can be attributed.

Question 15

Creditors

Answer 15

These are suppliers from whom the business has bought goods and whom the business has to yet pay.

Question 16

Debt Factoring

Answer 16

The sale of a business’ invoice to a third party. The third party is charged with processing the invoices, and the business selling the invoices recieves payment of 80-90% of the invoice value.