definitions

    Cards (15)

    • cash is the money a business has that is readily available to spend on day to day expenses
      made up of:
      • notes and coin found in the cash boxes and tills
      • Money in bank accounts
    • Profit is the money left over after all costs are paid
    • Cash flow is the flow of money into and out of a business
    • A cash flow forecast is a prediction of the flow of money into and out of a business over a future period of time
    • opening bank balance - the cash available to the business at the start of a month carried over from the closing balance of the previous month
    • closing bank balance - this is the mount of money a business has in the bank at the end of the period or time
    • Revenue - the money made from selling a product
    • Break even - A business can only make a profit when its sales revenue are greater than its costs. If revenue is les s than costs then the firm will make a loss.
    • Market - a place where buyers and sellers trade/exchange goods and service with each other
    • A customer - purchase and pays for a product or service e.g the customer is the supermarket to whom it supplies
    • A consumer - is the ultimate user of the product or service e.g the consumer is the individual who eats the meal
    • Mass market - a market where a business targets its advertising and promotional spending at the whole market, not at a particular segment e.g walkers crisps
    • niche market - a smaller segment of a larger market where customers have more specific needs and wants
    • Variable cost are the costs that vary directly with business levels of output
    • Fixed costs are costs that do not vary when a business changes its output
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