more terms

Question 1

price

Answer 1

the amount a customer has to pay for a good or servise

Question 2

sales revenue/turnover

Answer 2

the total number of sales generated by a buisness quanity sold X selling price

Question 3

fixed costs

Answer 3

costs that dont changes ad output changes

Question 4

variable costs

Answer 4

costs that change as output changes

Question 5

total costs

Answer 5

the combined total of cost and varible costs for and leven of output

Question 6

profit

Answer 6

is the difference between the income of the buisness and all its costs and expences mesured over a a period of time

Question 7

2 reasons why profit is important

Answer 7

1. reward for owner/s 2. a sorce of reinvestment

Question 8

cashflow statement

Answer 8

a document detailing the inflows and outflows of cash in the buisness

Question 9

use of cash flow

Answer 9

to identify periods of positive and negative and can show where an overdraft may be used

Question 10

overtrading

Answer 10

occurs where a buisness attemps to grow to rapidly and cash drains out of the business and causes a negative cashflow position

Question 11

receivership

Answer 11

is a situation in which an institution or enterprice is being held by a reciver a person placed in the custodial responsiblility for the property of the business

Question 12

reschedule payments

Answer 12

takes longer to pay your suppliers and get customers to pay the buisness much quicker