Business Studies- Unit 1.3 Keywords
Targets expressed in money terms such as making a profit, earning income or building wealth.
The amount of income received from selling goods or services over a period of time.
The number of items or products or services sold by a business over a period of time.
Costs which do not vary with the output produced such as rent, business rates, advertising costs, administration costs and salaries
All the costs of a business; it is equal to fixed costs plus variable costs.
Costs which change directly with the number of products made by a business such as the cost of buying raw materials.
Notes, coins and money into the bank.
The flow of cash into and out of a business.
The cash flowing into a business, its receipts.
The cash flowing out of a business, its payments.
Net Cash Flow
The receipts of a business minus its payments.
When a business can no longer pay its debts.
Cash Flow Forecast
A prediction of how cash will flow through a business in a period of time in the future.
The amount of money in a business at the start of the month.
The amount of money in a business at the end of the month.
Cumulative Cash Flow
The sum of cash that flows into a business over time.
A plan for the development of a business giving forecasts of items such as sales, costs and cash flow.
Sources of money for businesses that are borrowed or invested typically for more than a year.
Sources of money for businesses that may have to be repaid either immediately or fairly quickly, such as an overdraft, usually within a year.
A part ownership in a business; for example a shareholder owning 25% of the shares of a business owns a quarter of the business.
Money that has been set aside and not spent by individuals and households.
The monetary value of a company which belongs to its shareholders; for example, if 5 people invest £10,000 into a business, the share capital will be £50,000
The owners of a company
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.
Borrowing a sum of money which has to be repaid with interest over a period of time, such as 1-5 years.
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.
A loan where property is used as security.
A share of the profits of a company received by shareholders who own shares.
Profit which is kept back in the business and used to pay for investment in the business.
Renting equipment or premises.
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