Theme 2 Flashcards
(24 cards)
Debentures
Long term stock obtained from individuals
Business angels
Wealthy individuals make personal investments in return for a share
Crowd funding
Raising finance form a large number of people
Other businesses
Businesses with healthy cash balances may look to invest in other businesses
Loan
A set amount of money provided for specific purpose to be repaid with interest
Share capital
Finance raised from Sale of shares
Venture capital
Investment from an established business into another business for an equity
Overdraft
Facility to overspend a current account up to an agreed sum
Leasing
And benefit from the use of an asset without owning
Trade credit
Paying suppliers after a period of time after goods or services have been received
Grants
Fixed amounts of capital provided to business by the government to fund a specific projects
Sales volume
Amount of sales expresses the total number of units sold
Sales revenue
Amount of sales expressed as the total sum of money spent by consumers
Revenue
Money coming in from the sales of goods and service
Sales forecasting
Predicting the future sales volume and trends
Budgets
Forecasts / plans for the future finances of business
Income budgets
Target set for the amount of revenue to be achieved in set period of time
Expenditure budgets
Limit placed on amount to be spent in given time period
Profit budgets
Target set for the surplus between income and expenditure given time
Historical figures
Setting budgets Based on previous years
Zero based
Setting budget of zero
Variance
Difference between actual income expenditure and profit
Profitability
Measures financial performance of the business by comparing profits achieved to a second variable
Gross profit margin
Measure of firms profitability by looking at relationship between gross profit and sales revenue
