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profit
total revenue - total costs, profit is the money the business has left after its costs have been deducted from its revenue
1 of 30
total revenue
price x quantity sold, the money that comes into the business from sales
2 of 30
calculation for total costs
fixed costs + variable costs
3 of 30
calculation for variable costs
variable cost per unit x units made/sold
4 of 30
calculation for net cash flow
total receipts - total payments
5 of 30
calculation for closing balance
net cash flow + opening balance
6 of 30
break even point
fixed costs divided by contribution, when total costs is the same as total revenue
7 of 30
contribution
price- variable cost per unit
8 of 30
calculation for margin of safety
actual output - break even point
9 of 30
added value
the increased worth that a business creates for a product
10 of 30
overdraft
when you continue spending when your bank balance reaches 0
11 of 30
grants
money thats dispersed by the government to companies in exchange for something to be returned - for example them being sustainable
12 of 30
leasing
a contract called for the user to pay the owner for use of an asset
13 of 30
retained profit
profit that stays in the business and isn't payed out to shareholders
14 of 30
loans
amount of money borrowed from a bank
15 of 30
limited liability
the owners are only responsible for what they invest in the business originally
16 of 30
unlimited liability
the owners have to pay back all the debts of the business
17 of 30
spiced
strong pound imports cheap exports dearer
18 of 30
how to improve cash flow
1) destocking, 2) offering less credit 3)cheaper supplier 4)reduce stock orders 5)reduce workforce
19 of 30
market research
the process of gaining information about customers,competitors and market trends through collecting primary and secondary data
20 of 30
business cycle
a cycle in which the economy grows and then contracts
21 of 30
trade credit
buying something and paying the supplier at a later data
22 of 30
marketing mix
price, product, place, promotion
23 of 30
venture capital
when an investor invests money in a new or expanding business
24 of 30
share capital
when shares are bought on the stock market and shareholders buy them putting money into the business
25 of 30
economy
the economic activity carried out by people and business in a country
26 of 30
quantitative data
data in a numerical form
27 of 30
usp
unique selling point
28 of 30
market
a place where people come together to exchange goods or services
29 of 30
marketing
the managing process that is responsible for identifying, anticipating and satisfying customer needs
30 of 30

Other cards in this set

Card 2

Front

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

Back

total revenue

Card 3

Front

fixed costs + variable costs

Back

Preview of the back of card 3

Card 4

Front

variable cost per unit x units made/sold

Back

Preview of the back of card 4

Card 5

Front

total receipts - total payments

Back

Preview of the back of card 5
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