definitions

• 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