Business Key Words Flashcards
(20 cards)
Social Objectives - 1.3
Likely to be non-financial, such as reduce carbon emissions within the business or to improve the quality of life for a local community
Profit - 1.3
Revenue - Total Costs
Income Statement - 1.3
Financial statement showing the amount of money earned and spent in a certain period resulting in a profit or loss.
Break even point - 1.3
Point where revenue recieved meets all costs of the business
Trade Credit - 1.3
A credit arrangement that i offered by suppliers only to a business
Retained Profit - 1.3
Money that a business keeps, rather than paying out to its shareholders
Asset - 1.3
Any item of value that a business owns, such as machinery or premise
Overheads - 1.3
Fixed costs that come from running an office, shop or factory, which are not affected by the amount of specific products or services sold
Share Capital - 1.3
Money invested into the business, raised by the business issuing shares that it then sells to those who wish to invest in the company
Security - 1.3
When the business lenders ask the borrow to put up an asset, such as a house, or a valuable item owned by the business
Limited Liability - 1.4
Shareholders risk is limited to the amount of money that has been invested into the business. I.e. owners are not at risk of losing personal possessions
Market Share - 1.4
The percentage of total sales of a product in a market that is taken by one business in that market
Overdraft - 1.4
A facility provided by a bank allowing a current account holder to withdraw more money than is in their account. They’ll be charged a high rate of interest for it
Franchisor - 1.4
An established business that gives permission to an entrepreneur to trade using its name and products
Bank loan - 1.4
A fixed sum of money lent by a bank to an individual or a business for a specific purpose, which must be repaid over a set amount of time with interest
Franchisee - 1.4
An entrepreneur who pays a fee to trade using a the name and products of an established business
Cash Flow - 1.4
he amount of money coming in and out the business and the timing of its movements
Unlimited Liability - 1.4
The level of risk goes beyond the amount invested, so the personal assets of the business owner can be used to pay f the business’s debts.
Shareholder - 1.4
Investors, who are part owners of the business - They invest in the business for a share of the profits (Dividends) and voting rights
Franchise - 1.4
When one business gives another business permission to trade using its name and products in return for a fee and a share of profits
