BUSINESS finance

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  • Created by: zai_nan
  • Created on: 01-04-15 20:02
what is an example of a start up business
pay of premises , new equipment and advertising
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why is it difficult for new business to raise finance
few costumers and many competitors
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what does a short term cost mean
money packed within a year
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what is a internal sources of finance
funds found inside the business
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what are examples of external sources
creditors or bank
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what are the short term sources of finance
overdraft , trade credit , factoring
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what are the long term sources of finance
oweners saving , bank loans , debentured , mortage , hire purchase , government grants
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what does overdraft mean
where a bank allows a firm to take out more money than it has in its bank account
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what does trade credits mean
where suppliers deliver goods now and are willing to wait for a number of days before payment
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what does factoring mean
where firms sell their invoices to a factor such as a bank . they do this for some cash right away rather than waiting 28 days to be paid the full amount
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what does owners mean
who invest money in the business. For sole traders and partners this can be their savings for companies..
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what does debentures mean
loans made to a company
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what are grants
charities or the government gives money to help start the business
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how do you work out total cost
fixed cost+ variable cost
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what does revenue mean
the income earned by a business over a period of time
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how do you work out revenue
price x quantity
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what is revenue sometimes called
sales , sales revenue ,
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what does profit mean
the surplus left from revenue after paying all costs
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how do you work out the profit
total revenue - total costs
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what is the difference between budgeting and budgetary control ?
he budget is an act of planning whereas budgetary control is an act of controlling
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what does cash flow mean
Cash flow is simply about money coming and going from the business
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how does a business overcome cash flow problems
reduce cost , arranged a overdraft
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what is the purpose of budgeting
The purposes of budgeting are for resource allocation, planning, coordination, control and motivation
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Card 2

Front

why is it difficult for new business to raise finance

Back

few costumers and many competitors

Card 3

Front

what does a short term cost mean

Back

Preview of the front of card 3

Card 4

Front

what is a internal sources of finance

Back

Preview of the front of card 4

Card 5

Front

what are examples of external sources

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