Targets expressed in money terms such as making a profit, earning income or building wealth.
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Non-financial Objectives
Reasons for starting up a business that do not involve or require money.
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Revenue
Is the amount of income received from selling goods or services over a period of time.
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Sales Volume
The quantity or number of goods or services sold in the normal operations of a company during a specific period.
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Fixed Costs
Costs that do not change. No matter how many stuff u sell your fixed cost never changes.
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Variable Costs
Costs that can change.
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Total Costs
The sum of the total costs and variable costs of a business.
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Profit
when the revenues of the business are greater that its costs.
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Loss
when the revenues of the business are less than its costs.
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Cash
Money
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Cash Flow
The amount of money flowing in and out of a business
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Cash Flow Forecast
A prediction of how much cash will flow in and out the business in the future
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Inflow
The amount of money coming into the business(receipts)
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Outflow
The amount of money going out the business(payments)
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Net Cash Flow
inflows - outflows = net cash flow
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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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Trade Credit
where a supplier gives a customer a period of time to pay a bill (or invoice) for goods or services once they have been delivered.
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Stock
materials that a business holds. Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers.
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Longterm Finance
Sources of money for businesses that are borrowed or invested typically for more then a year
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Short term Finance
Sources of money for businesses that may have to be repaid either immediately or fairly quickly, such as an overdraft, usually within a year
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Share
a part ownership in a business; for example a shareholder owning 25 per cent of the shares of a business owns a quarter of the business.
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Personal Savings
Savings made by an individual.
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Share Capital
Percentage of the company a share holder holds.
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Shareholders
the owners of a company.
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Venture Capitalists
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 at a profit.
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Loan
A sum of money that is borrowed from the bank.
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Security
A method used to take ownership of an asset or property for avoiding loss and increase chances of repayment.
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Mortgage
Conditional right of ownership on an asset or property by its owner to a lender as security for a loan,
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Dividend
a share of the profits of a company received by shareholders who own shares.
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Retained Profits
The amount of money kept by the enterprise, instead of giving them out to share holders.
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Leasing
renting eqiupment or premises.
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Overdraft
A deficit in a bank account caused by when one takes out more money than the account holds.
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Marketing Mix
The mixture of Product, Price, Place and Promotion in a market segment
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Product
The outcome of manufacturing which you're selling.
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Price
The total retail cost of the product.
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Place
Where the product is being placed, location.
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Promotion
How the customer will get to know about the product, marketing.
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Other cards in this set
Card 2
Front
Non-financial Objectives
Back
Reasons for starting up a business that do not involve or require money.
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