putting an idea into practice Flashcards
(39 cards)
what are aims
a general target of the business to where it is heading
what are objectives
a clear measurable goal so success or failure is clear to see
wha are SMART objectives
targets that are specific, measurable, achievable, realistic and time bound
what is survival
keeping the business going, which depends on cash and determination
what are financial objectives
wealth, income, serval and profit
what are non - financial objectives
personal ,challenge, be your own boss, help others
what is revenue
income received from selling goods/services.
price x quantity sold
what is sales volume
number of products / services sold over a period of time
what are fixed costs
costs which do not vary in relation to products being made e.g rent, business rates, salaries
what are variable costs
costs which change directly with the number of products made by the business e.g buying raw materials
what are total costs
fixed costs + variable costs
what is profit
when revenue is greater than costs over a period of time
revenue - total costs
what is loss
when revenue is less than costs over a period of time
what is break even
when the level of output where total revenues are equal to total costs. profit nor loss is being made.
fixed costs divide by contribution
what is contribution
selling price - variable costs
definition for cash
the money the business holds
what is cash flow
the flow of cash in and out of the business
what is insolvency
when the business lacks its cash to pay off its debt
what is cash inflow
money coming into the business (receipts)
what is cash outflow
money coming out of the business (payments)
what is a cash flow forecast
a prediction of his cash will flow through the business in the future
what does net cash flow =
inflows - outflows
what does closing balance =
net cash flow + opening balance
what does opening balance =
last months closing balance
