Business

• trade credit 


  getting something and paying for it later on
• b2b 


  business to business
• b2c 


  business to consumer
• net profit=


  gross profit - total expenses
• gross profit =


  sales- cost of sales/ cost of goods
• total expenses


  overall expenses
• debit 


  instantly cash taken out
• credit 


  takes a month before cash is taken out of the bank
• gross profit 


  profit before tax
• asset


  something a business owns
• grant 


  money from the government to start a business. it doesn't have to be paid back.
• ambient

  using other business' to advertise your business
• direct debit 


  money goes out the account automatically
• liabilities 


  something the business owes
• current assets


  something the business owns but it can change (e.g. cash, inventory)
• fixed asset 


  doesn't change after a long time (e.g. building, equipment)
• cashflow forecast 


  helps to estimate the amount of money coming in and out of the business
• creditor 


  somebody who is owed money by the business
• sponsorship 


  when a business commits money to a non-profit event in return for promotional benefits.
• direct marketing 


  selling a product /service directly to the customer (e.g. emails)
• personal selling 


  face to face selling
• net profit


  total earnings of a business after all expenses have been deducted
• variable costs


  a cost that varies with level of output
• sales revenue 


  the income a business makes from the sale of goods/services
• LTD


  shareholders-> family and friends
• PLC


  bigger -> shareholders are public
• partnership 


  business owned by more than one person
• sole trader


  business owned by one person
• shareholder 


  someone who has bought shares in the company - own part of the company
• stakeholder 


  someone with an interest in the business
• public relations 


  public activities that makes the business look good
• benefit of an accurate statement of account 


  it will enable the business owner to plan their payments because they will be able to identify when the due dates are
• two benefits of calculating the break even point

  the business owner will know how much they need to sell because the break even point will show the level of profit and the business owner can see if the enterprise is at risk of making a loss and so would be able to take action
• benefit to the business owners enterprise of using face to face selling 


  the business owner can read the body language of the customers which would allow him to take actions and so is more likely to make a sale.
• advantages and disadvantages of printing


  + available to everyone, direct mail (straight target), local.

  -expensive, may not appeal to teens and older people (may prefer digital), may be though of as junk mail and not read, easily discarded
• advantages and disadvantages of digital advertising 


  + cheaper, many people have social media, help the business to become more competitive.

  -limited customers (older and younger people may not have social media), content would have to be updated regularly, some people may find social media advertising boring and skip past it easily
• what's the financial document order?


  1. purchase order
  2. delivery note
  3. invoice
  4. payment
  5. receipt
  6. statement of account
• invoice 


  what the price and quantity is
• receipt 


  show you've paid
• statement of account 


  shows all of the invoices received and payments made by a customer which alles the supplier to check if the customer is paying what is owed on time.