# Business Key Word and Formulae Flash Cards

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Revenue
The amount of income recieved from selling goods and services sold by a business.
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Profit
Occurs when revenues of a business are greater than its costs over a period of time.
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Breakeven
The level of output where total revenues are equal to total costs;this is where neither a profit or loss is made.
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Cash Flow
The flow of cash in and out of a business.
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Just-In-Time
A stock management system where stocks are onl delivered when they are needed by the production system,and so no stocks are kept by a business.
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Buffer Stock
The lowest amount of stock kept by a business.
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Franchise
The right given by one business to another to sell goods or services under it's name.
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Franchisee
A business that agrees to manufacture,distribute or provide branded product, under licence by a franchisor.
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Franchisor
The business that give franchisees the right to sell it's product, in return for a fixed sum of money or royalty payment.
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Revenue Formula
=price per item x quantity
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Variable Costs Formula
=cost per item x quantity
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Total Costs Formula
=fixed costs x variable costs
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Profit Formula
=total revenue - total costs
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Net Cash Flow Formula
=cash inflows - cash outflows
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Closing Balance Formula
=opening balance + net cash flow
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Contribution Per Item Formula
=price per item - variable cost per item
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Breakeven Formula
=fixed costs ÷ contribution per item
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## Other cards in this set

### Card 2

Profit

#### Back

Occurs when revenues of a business are greater than its costs over a period of time.

Breakeven

Cash Flow

Just-In-Time