Business studies Year 10 - Finance 5.0 / 5 based on 1 rating ? Business StudiesFinanceGCSEAQA Created by: GraceRobinsonCreated on: 09-01-16 11:58 Define overdraft bank allows business to take out more money than it has in its band account 1 of 30 Define trade credits suppliers who allow debts for goods to be paid one or two months after delivery 2 of 30 Define loans give by banks or family and friends 3 of 30 define grants from charities or governments to help start a business 4 of 30 define mortgage long term loan for purchasing a building 5 of 30 ad and dis of overdraft ad- used as many times a business wants dis- high interest rate 6 of 30 ad and dis of trade credits ad- free finance available for a period dis- discounts for immediate purchasing lost 7 of 30 ad and dis of loans ad - banks give large loans and families can be flexible and charge no interest dis- banks charge interest and families might not give you much money 8 of 30 ad and dis of mortgages ad- often with fixed interest rate dis- if it has a variable interest rate it can become expensive 9 of 30 ad and dis for grants ad - money doesn't need to be paid back dis- not a lot of businesses qualify for a grant 10 of 30 whats the difference between a creditor and debtor creditor is the person you owe money to and debtor is the person who owes the creditor money 11 of 30 define revenue amount of money a business earns 12 of 30 define costs expenses of producing goods 13 of 30 define a loss when revenues less than costs 14 of 30 define profit whats left over after costs-revenue 15 of 30 whats revenue calculation number of sold products x selling price = revenue 16 of 30 whats the costs calculation all costs added together = total costs 17 of 30 whats the profit (or loss) calculation costs-revenue = profit (or loss) 18 of 30 define cash flow movement of money in and out of the business 19 of 30 define cash money that businesses have available straight away 20 of 30 define forecast technique businesses use to estimate future sales and cash flow 21 of 30 define cash flow forecast prediction of businesses further cash inflows and outflows 22 of 30 define net cash flow difference between cash in and cash out 23 of 30 calculation for net cash flow receipts - payments 24 of 30 calculate the closing balance netcashflow + opening balance 25 of 30 three reasons why cash flow forecast is important check if they have enough cash for the future, persuade banks for loans and reduce future outflows of cash 26 of 30 define receipts money businesses is paid in a month 27 of 30 define payments what business spend eg- rent 28 of 30 whats insolvency when businesses run out of cash to pay workers or suppliers 29 of 30 Identify three solutions to cash flow problems making payments to suppliers a later date, use a source of finance and cut payments by reducing costs e.g.- reduce employee number 30 of 30
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