deliberately changing the monetary variables, like cash flow, to achieve financial objectives e.g. improved cash flow
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TRADE CREDIT
where a supplier gives a customer a period of time to pay for a invoice for the goods/ services that once have been delivered
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PROFIT
occurs when: total revenue> total costs, over a period of time
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REVENUES
the amount of money received from selling goods/ services over a period of time
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BREAK- EVEN CHART
a graph which shows the total revenue + total cost, allowing the break- even point to be shown
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BREAK- EVEN POINT
the level of output where: total revenue= total costs, no profit/ loss being made
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MARGIN OF SAFETY
the amount of output between the actual level of output where profit is being made + the break- even level of output. If the margin is at zero- the production is at/ below the break even level
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FINANCING A BUSINESS
how a business obtains money + other financial resources to: start up/ expand/ pay off losses it has made
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INTERNAL SOURCES OF FINANCES
finance which is obtained within the business, e.g. retained profit, asset sales
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RETAINED PROFIT
profit which is kept back in a business + used to pay investment in the business
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EXTERNAL SOURCES OF FINANCES
finance which is obtained from outside the business, e.g bank loans, cash from the issue of new shares
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EQUITY/ SHARE CAPITAL
the monetary value of a business that belongs to the business' owners, e.g. in a company- value of their shares
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SHARE
a part ownership in a business, e.g. a shareholder owning 25% of the shares of a business- owns a 1/4 of business
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OVERDRAFT
borrowing money from a bank by drawing more money than is acually in current account-- interest is charged on the amount overdrawn
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BONDS
a long- term loan where interest is paid at regular intervals like a year + the loan is all repaid at the end of the life of bond (traded on stock markets)
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Other cards in this set
Card 2
Front
reducing the level of output in a business
Back
DE- STOCKING
Card 3
Front
deliberately changing the monetary variables, like cash flow, to achieve financial objectives e.g. improved cash flow
Back
Card 4
Front
where a supplier gives a customer a period of time to pay for a invoice for the goods/ services that once have been delivered
Back
Card 5
Front
occurs when: total revenue> total costs, over a period of time
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