Key words for business 0.0 / 5 ? BusinessKey wordsBTEC NationalEdexcel Created by: NicoleBroad97Created on: 10-04-14 11:43 Over Draft This occurs if a business pays more out of its bank account than it has (goes below £0) 1 of 15 Payment terms Businesses will agree a number of days in which to pay the invoice for the goods they receive 2 of 15 costs of sales this is the direct cost to a business of producing a product 3 of 15 Gross profit The money made from selling a product after the costs of producing it have been taken away 4 of 15 Net profit The money made from selling a product after all overheads have been taken away from the gross profit 5 of 15 Capital Money spent by the business on items that should last a long time 6 of 15 Assets rights owned by the business e.g premises, equipment as well as money owed by other people (Debtors) 7 of 15 Fixed Assets items the business must keep to be able to trade such as a van or computer that can last a long time. 8 of 15 Current Assets Are items that can be changed into cash quickly and will change with every transaction 9 of 15 Debtor/ Trade receivables people who owe money to a business for goods or services they have received 10 of 15 Current Liabilities Money that needs to be paid back within a year, such as trade payable and a bank overdraft 11 of 15 Trade payables Are traders to whom the business owes money because the have supplied goods or services 12 of 15 Money invested Put into the business by the owner or through share capital by share holders 13 of 15 Retrained profit Profits from previous years. 14 of 15 Share Capital The amount of money invested in business by shareholders 15 of 15
Comments
No comments have yet been made