The Difference between the price of a good or server and the cost of its material inputs
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Bankruptcy
When an individual, or unincorporated business is unable to settle its liabilities
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Break Even Point
The level of output where neither a profit nor a loss is being made. This occurs at the point which total revenue equals total costs.
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Business Cycle
The way in which the economy moves from introduction to decrease over a period of time.
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Capital
Money that has been invested in a business. It can take from the from of machinery as well as money.
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Cash Cow
a product that has a high share of a declining market, as identified by the Boston matrix.
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Cash Flow
The movement of cash into (cash inflow) and out of (cash outflow) a business. Both of these are required to balance and careful management to avoid running out of cash.
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Corporation Tax
A tax which the Government charges to companies on their profits once they reach a certain level.
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Credit
The ability to buy goods but to pay for them at a later date.
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Disposable income
The money that you have left after all deductions
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Dividend
A payment made to shareholders out of the profits that a firm makes, in return for their investment in the company.
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Dog
A product which has low market share in the market that has little or low growth, according to the Boston Matrix.
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Economy
The system by which a country allocates its scare resources
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Entrepreneur
A person who organised the other factors of production. They will start a business, raise the capital accept the risk of failure, and receive any profits.
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Factoring
Where a bank will buy a firm's debtors of them, but will only pay 80% of the invoiced value
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Franchisee
A person who pays fees and royalty payments for the privilege of trading under another firms name.
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Franchisor
A firm which allows another person or business, for a fee to use its tried and tested products and to trade under its name.
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Hierarchy
The different levels of authority in a business for example managing director, finance director, accountant, wages clerk.
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Incentives
Financial or equivalent reward to stimulate action from staff or customers for example a company car or a holiday.
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Income Tax
A government tax on an individuals income.
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Inflation
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of
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Interest rates
This is the cost of borrowing money.
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International Trade
The imports and exports of country's.
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Invention
Developing a completely new idea/product
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Innovation
Developing a product already on the market.
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Other cards in this set
Card 2
Front
When an individual, or unincorporated business is unable to settle its liabilities
Back
Bankruptcy
Card 3
Front
The level of output where neither a profit nor a loss is being made. This occurs at the point which total revenue equals total costs.
Back
Card 4
Front
The way in which the economy moves from introduction to decrease over a period of time.
Back
Card 5
Front
Money that has been invested in a business. It can take from the from of machinery as well as money.
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