Unit 5 - Finance
- Created by: emilyhufford
- Created on: 04-05-17 14:54
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- Finance
- Financial objectives
- Profit
- Gross profit
- Operating profit
- Profit for the year
- Return on investment
- Operating profit/ capital invested x 100
- Capital structure
- Debt
- Equity
- Profit
- Measuring financial performance
- Budgets
- Revenue
- Expenditure
- Profit
- Variances - adverse or favourable
- Cash flow forecasts
- Inflows
- Outflows
- Net cash flow
- Payables and receivables
- Break even
- Contribution
- Selling price - variable costs
- Fixed costs/ contribution
- Margin of safety
- Contribution
- Profit margins
- Operating profit
- Gross profit
- profit for the year
- Budgets
- Sources of finance
- Internal
- Sales of assets
- Retained profit
- External
- Venture capitalist
- Debt factor
- Overdraft
- Loan
- Share capital
- Crowd funding
- Influences on choice of finance
- Legal structure
- Cost of finance
- Flexibility
- Control
- Purpose of finance
- Internal
- Improving cash flow and profits
- Cash flow
- Reasons for poor cash flow position
- Overtrading
- Giving too much trade credit
- Poor trade credit from suppliers
- Poor cash flow forecasting
- How to improve cash flow
- Reduce trade credit
- More favourable trade credit terms with suppliers
- Debt factor
- Sale and leaseback
- Improved control of working capital
- Arrange short term borrowing
- Reasons for poor cash flow position
- Profit
- Reduce costs
- Decrease prices
- Eliminate unprofitable aspects of production
- Use capacity more fully
- Reduce number of substantial products
- increase business's efficiency
- Cash flow
- Financial objectives
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