Business Definitions 0.0 / 5 ? Business StudiesKey WordsAll LevelsOCR Created by: MelissaCreated on: 23-07-18 14:57 Annual Report Comprehensive report on a Company's activities throughout the last year 1 of 24 Break-even The point at which sales allows total costs to equal total revenue; at the break-even point the business makes no profit or loss 2 of 24 Budget Planned income and expenditure over a period of time 3 of 24 Aims Summary of what the business wants to achieve in the future (Long-Term) 4 of 24 Objectives Targets set (SMART) that detail the steps involved in achieving the overall aims 5 of 24 Capital Expenditure Business pending on non-current assets e.g. premises and machinery 6 of 24 Capital Income Initial money invested in setting up the business or to purchase non-current assets 7 of 24 Cash Book A book in which receipts and payments are recorded 8 of 24 Cash Flow Movement of money into and out of the business 9 of 24 Costs Expenses a business incurs when producing and supplying products and services 10 of 24 Cost of Sales Total amount the business has paid to make the product or service available e.g. Ingredients 11 of 24 Diversification A strategy for expansion into new markets with new products 12 of 24 External Influences Factors outside the businesses control 13 of 24 Forecast A financial prediction or estimate 14 of 24 Gross Profit Sales Revenue - Cost of Goods Sold 15 of 24 Income Statement Financial statement showing revenue and expenses a business has had over a period of time. Will also show profit/loss 16 of 24 Insolvent When a business is unable to pay its debts 17 of 24 Liabilities Debts owed by the business 18 of 24 Loss The deficit of revenue after paying total costs 19 of 24 Net Profit Gross Profit - Expenditure (Overheads) 20 of 24 Profit The surplus left over from from revenue after paying total costs 21 of 24 Revenue The money earned from selling goods/services. Revenue = Quantity x Price 22 of 24 SMART Specific, Measurable, Achievable, Realistic and Time Bound 23 of 24 SWOT Strengths, Weaknesses, Opportunities and Threats 24 of 24
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