Karteikarten
3.3 Keywords - Effective Financial Management
Karten in diesem Stapel (21)
- 1Cash FlowThe flow of cash into and out of a business
- 2Financial ManagementDeliberately changing monetary variables like cash flows to achieve financial objectives such as improved cash flow
- 3De-stockingReducing the levels of stocks in a business
- 4Trade CreditWhere a supplier gives a customer a period of time to pay for a bill (or invoice) for goods or services once they have been delivered
- 5ProfitOccurs when the revenues of a business are greater than its costs over a period of time
- 6RevenuesThe amount of money received from selling goods or services over a period of time
- 7Break-even pointThe level of output where total revenues are equal to total costs; this is where neither a profit nor a loss is being made
- 8Total revenueThe revenue earned by a business from the sale of a given quantity sold x average price
- 9Total CostsAll the costs of a business; equal to fixed costs plus variable costs
- 10Fixed CostsCosts which do not vary with the amount produced, such as rent, business rates, advertising costs, administration costs and salaries
- 11Variable CostsCosts which change directly with the number of products made by a business, such as the cost of buying raw materials
- 12Break-even chartA graph which shows total revenue and total cost, allowing the break-even point to be drawn
- 13Margin of SafetyThe amount of output between the actual levels of output where profit is being made and the break-even level of output; if the margin of safety is zero, then production is at or below the break-even level
- 14Financing a businessHow a business obtains money and other financial resources to start up, expand and if necessary pay off losses it has made
- 15Internal Sources of FinanceFinance which is obtained within the business such as retained profit or the sale of assets
- 16External Sources of FinanceFinance which is obtained from outside the business such as bank loans and cash from the issue of new shares
- 17Retained ProfitProfit which is kept back in the business and used to pay for investment in the company
- 18Equity or share capitalThe monetary value of a business that belongs to the business’ owners. In a company, this would be the value of their shares
- 19ShareA part ownership in a business; for example a shareholder owning 25% of the shares of a business owns a quarter of the business
- 20OverdraftBorrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn
- 21BondsA long-term loan where typically interest is paid at regular intervals like a year and the loan is all repaid at the end of the life of the bond. Bonds are traded on stock markets.
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- 3.3 Effective Financial Management - Keywords & Definitions - Edexcel Business Studies GCSE
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- Mr_Lambert_Hungerhil
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