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total revenue - total costs, profit is the money the business has left after its costs have been deducted from its revenue
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total revenue
price x quantity sold, the money that comes into the business from sales
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calculation for total costs
fixed costs + variable costs
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calculation for variable costs
variable cost per unit x units made/sold
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calculation for net cash flow
total receipts - total payments
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calculation for closing balance
net cash flow + opening balance
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break even point
fixed costs divided by contribution, when total costs is the same as total revenue
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price- variable cost per unit
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calculation for margin of safety
actual output - break even point
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added value
the increased worth that a business creates for a product
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when you continue spending when your bank balance reaches 0
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money thats dispersed by the government to companies in exchange for something to be returned - for example them being sustainable
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a contract called for the user to pay the owner for use of an asset
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retained profit
profit that stays in the business and isn't payed out to shareholders
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amount of money borrowed from a bank
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limited liability
the owners are only responsible for what they invest in the business originally
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unlimited liability
the owners have to pay back all the debts of the business
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strong pound imports cheap exports dearer
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how to improve cash flow
1) destocking, 2) offering less credit 3)cheaper supplier 4)reduce stock orders 5)reduce workforce
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market research
the process of gaining information about customers,competitors and market trends through collecting primary and secondary data
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business cycle
a cycle in which the economy grows and then contracts
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trade credit
buying something and paying the supplier at a later data
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marketing mix
price, product, place, promotion
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venture capital
when an investor invests money in a new or expanding business
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share capital
when shares are bought on the stock market and shareholders buy them putting money into the business
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the economic activity carried out by people and business in a country
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quantitative data
data in a numerical form
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unique selling point
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a place where people come together to exchange goods or services
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the managing process that is responsible for identifying, anticipating and satisfying customer needs
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Other cards in this set

Card 2


price x quantity sold, the money that comes into the business from sales


total revenue

Card 3


fixed costs + variable costs


Preview of the back of card 3

Card 4


variable cost per unit x units made/sold


Preview of the back of card 4

Card 5


total receipts - total payments


Preview of the back of card 5
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