Finance in Business

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  • Created by: babeyshep
  • Created on: 20-04-15 10:15
Start-Up Costs
Money spent by a business before it can start trading
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Operating Costs (Running Costs)
Money spent on a regular basis to keep a business running
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Income
Money paid into a business
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Fixed Costs (Indirect Costs)
Expenditure which don't vary depending on the sales
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Variable Costs (Direct Costs)
Costs which vary depending on sales
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Total Costs
Total expenditure over a set period of time
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Expenditure
Money spent by a business
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Overheads
Everyday running costs of a business
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Profit
When revenue is more than expenditure
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Loss
When revenue is less than expenditure
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Breakeven Point
When the income is the same as the expenditure - There is no profit or loss
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Budgeting
Planning future expenditure and revenue targets to ensure profit
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Budgetary Control
Checking what is actually happening and comparing it with the plan to make improvements
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Cash Inflows
The amounts of money entering a business' bank account
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Cash Outflows
The amounts of money leaving a business' bank account
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Net Cash Flow
The difference between the cash inflow and outflow over a particular time period
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Cash Balance
The amount of money forecast to be in the bank account
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Overdraft
If a business pays more out of it's bank account than it has in there - Allowed y banks but with an extra charge
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Capital
Money spent by the business on assets (items that should last a long time)
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Cost of Sales
The cost of producing a product
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Gross Profit
Money made from a sale once the production costs have been deducted
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Net Profit
Money made from selling a product once all costs have been deducted
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Financial Year
Trading period where a business collects annual income statements from. (Usually 1st May - 30th April)
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Assets
Items a business buys that last a long time
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Debtors
People who owe money to the business
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Liabilities
Amounts of money that a business owes
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Share Capital
The amount of money invested in the business by shareholders
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Working Capital
Money the business can raise quickly
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Reserves
Money that has been saved from previous profitable years
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Other cards in this set

Card 2

Front

Money spent on a regular basis to keep a business running

Back

Operating Costs (Running Costs)

Card 3

Front

Money paid into a business

Back

Preview of the back of card 3

Card 4

Front

Expenditure which don't vary depending on the sales

Back

Preview of the back of card 4

Card 5

Front

Costs which vary depending on sales

Back

Preview of the back of card 5
View more cards

Comments

ronyraju10

brilliant website. thanks a lot X

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