the percentage of market held by one company or brand.
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Objectives
a clear, measurable goal, so success or failure is clear to see.
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SMART objectives
targets that are specific, measurable, achievable, realistic and time bound.
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Survival
keeping the business going, which ultimately depends on determination and cash.
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Fixed costs
costs that don't vary just because output varies, for example rent.
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Variable costs
costs that vary as output varies, such as raw materials.
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Total costs
all the costs for a set period of time, such as a month
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Interest
the charges made by banks for the cash they have lent to a business, for example six% per year.
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Profit
the difference between revenue and total costs; if the figure is negative the business is making a loss.
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Revenue
the total value of the sales made within a set period of time, such as a month.
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Sales revenue=
price x quantity sold
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Total costs=
variable costs + fixed costs
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Profit=
total revenue - total costs
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Break even
the level of sales at which the total costs are equal to total revenue. At this point the business is making neither a profit nor a loss.
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Break-even chart
a graph showing a company's revenue and total costs at all possible levels of output.
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Margin of safety
the amount by which demand can fall before the business starts making losses.
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Break- even output
fixed costs/ price- variable costs per unit
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Margin of safety
sales - breakeven output
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Cash
the money the firm holds in notes and coins, and in its bank accounts.
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Cash flow
the movement of money into and out of the firm's bank account.
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Insolvency
when the business lacks the cash to pay its debts.
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Overdraft
the amount of the agreed overdraft facility that the business uses.
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Overdraft facility
an agreed maximum level of overdraft.
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Cash flow forcast
estimating the likely flows of cash over the coming months and, therefore, the overall state of ones bank balance.
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Closing balance
the amount of cash left in the bank at the end of the month.
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Negative cash flow
when cash outflows are greater than cash inflows.
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Net cash flow
cash in minus cash out over the course of a month.
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Opening balance
the amount of cash in the bank at the start of the month.
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Crowdfunding
raising capital online from many small investors ( but not through the stock market)
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Dividends
payments made to shareholders from the company's yearly profits. The directors of the company decide how large a dividend payment to make; in a bad year they can decide on zero.
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Retained profit
profit kept within the business ( not paid out in dividends); this is the best source of finance for expansion.
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Share capital
raising finance by selling part-ownership in the business. Shareholders have the right to question the directors and to receive part of the ya
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Trade credit
when a supplier provides goods but is willing to wait to be paid- for perhaps up to three months. This helps with cash flow.
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Venture capital
a combination of share capital and loan capital, provided by an investor willing to take a chance on the success of a small to medium-sized business.
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Other cards in this set
Card 2
Front
the percentage of market held by one company or brand.
Back
Market share
Card 3
Front
a clear, measurable goal, so success or failure is clear to see.
Back
Card 4
Front
targets that are specific, measurable, achievable, realistic and time bound.
Back
Card 5
Front
keeping the business going, which ultimately depends on determination and cash.
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