1.3

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Created by
gritha

Cards (21)

  • What are the smart objectives?
    Specific
    Measurable
    Achievable
    Realistic
    Timebound
  • What are the financial aims and objectives of a business?
    Survival
    profit
    market share
    sales
  • What is the meaning of revenue?
    It is the amount of money you earn from selling goods and services.
  • Revenue formula?
    Revenue = Price x Quantity
  • Difference between fixed and variable costs of a business?
    Fixed- They don't change when your total sales change
    Variable- Change when your total sales change.
  • Total cost formula?
    Total cost = fixed cost + variable cost
  • What is the cost of interest?
    The cost of interest is the amount of money paid in addition to the principal amount borrowed.
  • What is the reward of interest?
    You get money back after you save money in the bank
  • Interest formula?
    Total repayment - Borrowed money
    ---------------------------------- x 100
    borrowed money
  • What is the breakeven formula?
    FC
    -----
    sc-vc
  • What does the margin of safety mean?
    BEP-MOS
  • Fomula of margin of safety?
    Actual sales - breakeven point
  • What is cash?
    Cash is the money a business has that helps it operate and stop it from insolvency.
  • Difference between cash and profit?
    Cash refers to the actual money that a company has on hand, while profit is the amount of money a company earns after deducting expenses from its revenue.
  • What is the formula for net cash flow?
    Cash inflow - cash outflow
  • Why is a cash flow forecast good?
    It gives a business aims
    helps solve customer payouts
  • Why are cash flow forecasts bad?
    Uncertainty
  • Why does a business need finance?
    To cover start-up costs?
  • What factors effect finance?
    How much needed
    When needed
    how long needed for
  • Short term sources of of finance?
    Trade credit - buy now pay later
    bank over draft - informal loan from the bank
  • Long-term sources of finance?
    Personal savings - your money put in
    Loan family - friends and family give you money
    Loan bank - bank gives you money with interest
    Venture Capital - Professional investor puts money
    Share capital - shares sold
    Crowdfunding - a group of people who invest
    Retained profit - Use the money from what you made before.