Theme 2.1 Key Word Cards

1. A one-person business with unlimited liability. (4, 6)
6. It can provide the numbers that help managers to make better decisions, and it can count what is happening and what has happened. Here the focus is on finance for decision making. (7)
7. An optimistic estimate of the best possible outcome - for example, if sales prove much higher than expected. (4, 4)
10. Those that do not change as the number of sales change (e.g. rent or salaries) (5, 5)

2. An asset used as security for a loan. It can be sold by a lender if the borrower fails to pay back a loan. (10)
3. Those owed money by a business - for example, suppliers and bankers. (9)
4. High-risk capital invested in a combination of loans and shares, usually in a small, dynamic business. (7, 7)
5. Those that change in line with the amount of business (e.g. the cost of buying raw materials). (8, 5)
7. When an individual is unable to meet personal liabilities, some or all of which can be as a consequence of business activities. (8)
8. Debts are liabilities that can overwhelm a business owner's personal as well as business finances. (11)

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