Buss2 aqa key words 0.0 / 5 ? Business StudiesASAQA Created by: LouisaCreated on: 03-06-13 13:18 Budget A target amount of money set by a business in a specific period of time 1 of 14 Favourable variance A difference between the budgeted figure and the actual figure which leads to higher profits than expected 2 of 14 Adverse variance A difference between the budgeted figure and the actual figure which leads to lower than expected profit 3 of 14 Cash flow The movement of cash in and out of a business over a specific period of time 4 of 14 Creditors Suppliers who are owed money by the business - purchases have been made on credit 5 of 14 Credit control The monitoring of debts to ensure that credit periods are not exceeded 6 of 14 Bad debt Unpaid customer bills that are now unlikely to ever be paid 7 of 14 Overtrading Expanding a business rapidly without obtaining all of the necessary finance so that cash flow shortage develops 8 of 14 Debt factoring Debt factoring companies buy the customer bills from a business and offer immediate cash (90% of debt) 9 of 14 Profit margin The profit made as a proportion of sales revenue 10 of 14 Gross profit Sales revenue - variable costs (Ignores fixed cost so is big/gross number) 11 of 14 Net profit Sales revenues - total costs 12 of 14 Return on capital Measures the profit in relation to the capital invested. Net profit / Capital investment x100 13 of 14 Organisational structure The way in which jobs, power and responsibilities are are organised within the business 14 of 14
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