targets expressed in money terms such as making a profit, earning income or building wealth
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Revenues or sales revenue or turnover or sales turnover
the amount of income received from selling goods or services over a period of time
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Sales volume
the number of items or products or services sold by a business over a period of time
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Fixed costs
costs which do not vary with the output produces such as rent, business rates, advertising costs, administration costs and salaries
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Total costs
all the costs of a business, it is equal to fixed costs plus variable costs
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Variable costs
costs which change directly with the number of products made by a business such as the cost of buying raw materials
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Cash
notes, coins and money in the bank
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Cash flow
the flow of cash into and out of a business
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Inflow
the cash flowing into a business, its receipts
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Outflow
the cash flowing out of a business, its payments
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Net cash flow
the receipts of a business minus its payments
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Insolvency
when a business can no longer pay its debts
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Cash flow forecast
a prediction of how cash will flow through a business in a period of time in the future
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Opening balance
the amount of money in a business at the start of a month
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Closing balance
the amount of money in a business at the end of a month
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Cumulative cash flow
the sum of cash that flows into a business over time
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Business plan
a plan for the development of a business giving forecasts of items such as sales, costs and cash flow
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Long term finance
sources of money for businesses that are borrowed or invested typically for more than a year
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Short term finance
sources of money for businesses that may have to be repaid wither immediately or fairly quickly, such as overdraft, usually within a year
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Share
a part ownership in a business; for example a shareholder owning 25% of the shares of a business owns a quarter of the business
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Personal savings
money that has been set aside and not been spent by individuals or households
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Share Capital
the monetary value of a company which belongs to its shareholders; for example, if five people each invest £10000 into a business, the share capital would be £50000
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Shareholders
the owners of a company
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Venture capitalist
an individual or company which buys shares in what they hope will be a fast growing company with a long term view of selling the shares as profit
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Loan
borrowing a sum of money which has to be repaid with interest over a period of time, such as 1-5 years
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Security (or collateral)
assets owned by a business which are used to guarantee repayments of a loan; if the business fails to pay off the loan, the lender can sell what it has been offered as security
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Mortgage
a loan where property is used as security
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Dividend
a share of the profits of a company received by shareholders who own shares
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Retained profit
profit which is kept back in the business and used to pay for investment in the business
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Leasing
renting equipment or premises
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Overdraft facility
borrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn
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Other cards in this set
Card 2
Front
the amount of income received from selling goods or services over a period of time
Back
Revenues or sales revenue or turnover or sales turnover
Card 3
Front
the number of items or products or services sold by a business over a period of time
Back
Card 4
Front
costs which do not vary with the output produces such as rent, business rates, advertising costs, administration costs and salaries
Back
Card 5
Front
all the costs of a business, it is equal to fixed costs plus variable costs
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