THEME 2 DEFINITIONS Flashcards
(41 cards)
SOURCES OF FINANCE
PLACES WHERE GAIN FINANCE
COLLATERAL
SOMETHING OF VALUE AS SECURITY
UNABLE TO PAY LOANS ASSET TRANSFERRED
BUSINESS ANGELS
INVEST IN EARLY STAGES OF BUSINESS
TAKE SIGNIFICANT EQUITY
CROWDFUNDING
EXTERNAL FINANCE FROM SMALL INVESTMENTS
WEB BASED APPEAL FOR INVESTORS
METHOD OF FINANCE
PROCESS THROUGH WHICH A SOURCE OF FINANCE PROVIDES MONEY TO A BUSINESS
VENTURE CAPITAL
METHOD OF PROVIDING FINANCE
HIGHER RISK INVESTMENT (LOANS AND SHARES)
OVERDRAFT
CONTINUE SPENDING EVEN WITH -VE ACCOUNT
AGREED LIMIT
LEASING
ASSET RENTED FOR MONTHLY FEE FOR SET PERIOD
TRADE CREDIT
GOODS/SERVICE PROVIDED BUT NOT PAID FOR IMMEDIATELY
LIQUIDATION
COMPANY’S OWNERS CLOSE DOWN COMANY
SELLING ASSETS = CASH = PAY DEBTS
BUSINESS PLAN
DOCUMENT SETTING OUT BUSINESS IDEA
HOW IT WILL BE FINANCED, MARKETED AND PUT INTO PRACTICE
TREND
GENERAL PATH VARIABLE TAKES OVER TIME PERIOD
BREAK EVEN
BUSINESS SELLING ENOUGH TO COVER COSTS WITHOUT MAKING PROFIT
MARGIN OF SAFETY
HORIZONTAL DISTANCE BETWEEN ACTUAL OUTPUT AND BREAK EVEN OUTPUT
OVERHEAD COSTS
INCURRED AS A WHOLE
DIFFICULT TO ATTRIBUTE TO PARTICULAR SECTION OF BUSINESS
BUDGET
TARGET FOR REVENUE OR COSTS FOR FUTURE TIME PERIOD
FINANCIAL PLAN FOR FUTURE COSTS AND INCOMES
VARIANCE ANALYSIS
-LOOKING BACK TO CALCULATE DIFFERENCE BTWEEN BUDGETED FIGURE AND ACTUAL FIGURE
PROFIT
DIFF IN REVENUE OF BUSINESS AND COSTS GENERATED DURING PERIOD OF TIME
COST OF SALES
COSTS DIRECTLY ASSOCIATED WITH MAKING PRODUCT
FIXED OVERHEADS
COSTS PAID NO MATTER PERFORMANCE
NET FINANCING COST
INCOME FROM INTEREST ON BANK DEPOSITS - INTEREST CHARGES FROM OVERDRAFTS&LOANS
(-VE NUMBER)
STATEMENT OF COMPREHENSIVE INCOME
DOCUMENT FROM PLC
SHOW REVENUE
DIFFERENT COSTS AND DIFFERENT PROFITS FOR A YEAR
PROFITABILITY
PROFIT AS A % OF SALES REVENUE
LIQUIDITY
ABILITY OF BUSINESS TO FIND CASH TO PAY BILLS READILY AVAILABLE (BANK OR CUSTOMER PAYMENT)
