Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BTF > Sources of Finance > Flashcards

Sources of Finance Flashcards

1
Q

Margin

A

Sales are 100% - stay within 100% COS is balancing figure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Markup

A

Sales are 100 + markup %

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

return on capital employed

A

PBIT/TA-CL
Profit per £1 capital used in business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Measuring use in not for profit - three Es

A

Effectiveness - achieved goals
economy - reduction of cost
Efficiency - being effective at minimum cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is defined
those product features that are particularly valued by a group of customers and therefore where the organisation must excel to outperform competitors

A

Critical Success Factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is defined
performance standards used to measure achievement of critical success factors

A

KPIS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

TCFD four areas

A

governance
strategy
risk management
metrics and targets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is described
integrated set of performance measures linked to the achievement of strategic objectives

A

BSC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

BSC perspectives

A

Customer
Internal business processes
innovation and learning
Financial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is described
banks take deposit from customers then use those funds to lend money to other customerse

A

financial intermediation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is defined
operate money transmission service in the economy, operate a cheque account and deal with cheque clearing sometimes known as commercial banks retail banks or clearing banks

A

primary banks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is defined
made up of wide range of merchant banks and other banks, do not tend to take part in the clearing system

A

Secondary banks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Main aims of bank of England

A

monetary stability and financial stability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Four types of contractual relationship between bank and customer

A

receivable/payable
bailor/bailee
principal / agent
mortgagor/mortgagee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is defined
software and other technologies that can be used by businesses to automate and improve financial services

A

fintech

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is described
a term that covers a vast array of wholesale markets buying and selling different forms of money or marketable securities

A

money markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is defined
short term highly liquid investments that are readily convertible into cash, companies may use them to invest ST surplus finance

A

marketable securities

18
Q

What kind of financial instrument
issued by bank of England on behalf of government, minimum investment 50k, run for three months, secure and liquid but low returns, can convert by selling in discount market

A

treasury bills

19
Q

What kind of financial instrument
money in bank accounts of banks and other financial intermediaries which offer investment periods ranging from overnight to five years, yields exceed that of treasury bills

A

deposits

20
Q

What kind of financial instrument
Certificate for deposit of 50k or more for fixed term which can be sold earlier than maturity in the CD market

A

certificate of deposit

21
Q

what kind of financial instrument
offer large range of maturities and rates based on money market rates, can have CGT advantages

A

Gilts

22
Q

what kind of financial instrument
debentures and loans of companies quoted on stock exchange, rates fluctuate with general interest and there is good liquidity

A

bonds

23
Q

What kind of financial instrument
IOUs issued by large company can be held to maturity or sold to third parties

A

Commercial paperes

24
Q

what is described
national and international market in which a business may obtain finance needed for short term and long term plans

A

capital market

25
Q

Money market how long looking at raising funds for

A

1 year

26
Q

capital markets how long looking at raising funds for

A

more than one year

27
Q

Within national stock market there is

A

primary - new share issues
secondary - trading shares already in issue

28
Q

what is defined
held by owners of business and through their voting rights they exercise ultimate control

A

equity

29
Q

What is defined
part of the risk bearing ownership of the business, but entitled to dividend before ordinary so carry less risk. return is usually fixed maximum dividend so similar to debt

A

preference shares

30
Q

What is defined
fixed interest rate borrowing with set repayment date. Secured on specific asset or assets in general such that lenders are protected above unsecured creditors in legislation

A

Loan stock

31
Q

Factors to consider when making rights issue

A

issue costs
shareholder reaction
control
unlisted company - difficult to find buyers if rights not taken up

32
Q

what is defined
short term loan of variable amount up to a limit from a bank, typically repayable on demand, interest charged on day to day basis at variable rate

A

overdraft

33
Q

advantages of overdraft

A

flexible
lower cost

34
Q

Disadvantages of overdraft

A

risk
cost
control

35
Q

what is defined
business receives loan finance and insurance (non recourse factoring) so that in the event a customer does not pay, the business does not have to repay the loan

A

debt factoring

36
Q

services typically offered by debt factor

A

financing credit taken by customers
insuring receivables
managing running of receivables ledger

37
Q

what kind of debt factoring is when the debt factor takes on all risk, if customer do not pay, business doesn’t have to repay the loan

A

non-recourse factoring

38
Q

Small companies can use what to raise capital

A

angel investors/crowd funding
AIM
VCs

39
Q

what is defined
Any source of finance that is used specifically to finance projects or activities that directly lead to environmental benefit.

A

green finance

40
Q

what is described
any type of bond instrument where proceeds exclusively applied to finance or re finance in part or in full new and or existing eligible green projects

A

green bonds

BTF (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions