business 1.3

1.3 busiensss

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  • Created by: Jasmine
  • Created on: 29-03-12 11:00

1.3 Key words

  • Sales Turnover- The amount of income recieved from selling goods or serivces over a period of time
  • Sales volume- the number of items or products or serivces sold by a business over a period of time.
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1.3 Key words

  • Fixed costs- costs which do not vary with the output produced such as rent, buisness rates, advertising costs, administration costs and saleries.
  • Total costs- all the costs of a buisness; it is equal to fixed costs plus variable costs.
  • Veriable costs- costs which change directly with the number of products made by a business such as the cost of buying raw materials
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1.3 Key words

  • Profit- occurs when the revenue of a business are greater than its costs over a period of time.
  • Loss- occurs when the revenue of a business are less than its costs over a period of time.
  • Cash- notes, coins and money in the bank.
  • cash flow- the flow of cash into and out of a business.
  • inflow- the cash flowing into a business its receipts.
  • Outflow- the cash flowing out of a business, its payments.
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1.3 Key words

  • Net cash flow-the recipients of a business minus its payments.
  • insolvency- when a busniess 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 future.
  • opening balance- the amount of money in a business at the start of a month.
  • closing balance= the amount of money in a business at the end of a month.
  • cumulative cash flow- the sum of cash that flows into a business over time.
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1.3 Key words

  • trade credit- where a supplier gives a customer s period of time to pay a bull (or invoice) for goods or services once they have been delivered.
  • stocks-materials that a business holds. some could be materials waiting to be used in the production process and some could be fnished stock waiting to be delivered to customers.
  • Business plan-a plan for the development of a business giving forecasts of items such as sales, costs and cash flow.
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1.3 Key words

  • Long ter finance- sources of money for businesses that are borrownes or invested typicalls for more than a year.
  • short term finance- sources of money for businesses that may have to be repaid either immedietly or fairly quickly, such as an overdraft, usually within a year.
  • share- a part ownership owning 25 per cent of the shares of a business owns a quater of the business.
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