Unit 1.3 2.0 / 5 based on 2 ratings ? Business StudiesFinanceGCSEAQA Created by: EmilyDysonCreated on: 04-05-15 10:43 What are the sources of finance? Bank loan Family and Friends Overdrafts - a business can spend more then they have, then they pay it back with high interest rates. Mortgage Trade Credit - they pay for their stock 1-2 months after its delivered. Grants - is normally given by a government organisation or a charity. 1 of 5 Why does the govenment support entrepreneurs? business's pay tax boost the economy regenerate areas Try ro move out of recession 2 of 5 What are the equations for calculating Profit and Profit Profit = Sales revenue - Costs Sales Revenue Revenue = Price x Quantity Sold 3 of 5 What is shown in a Cash Flow Forecast? Receipts (cash in) - the money paid in Payments (cash out) - anything the business spends that month Net Cash Flow - the difference between receipts and payments Opening Balance - the money the business has at the start of the month Closing Balance - The money the company has at the end of the month 4 of 5 How can businesses try and prevent the cash shorta Trade Credit - make payments to your supplier at a later date Get customers to pay earlier Bank Loan - however there will be high interest attached. 5 of 5
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