Flashcards in Unit 1 Deck (25):
What is a franchise
The right given by one business to other businesses to sell goods by its name
What is a cash flow of a business?
Cash flow is the money flowing into and out of a business on a day-to-day basis
What is a cash flow forecast?
This predicts how cash flows through a business overtime.
What is the benefit of a cash flow forecast?
A business can use it to identify periods where it may have cash flow problems
How to work out receipts?
Net cash flow + total payment
How to work out a missing payment ?
A missing payment can be found by adding up the rest of the payments and taking it away from the total payments
How to work or the net cash flow?
Receipts - total payments
Opening balance - closing balance
What is the opening balance?
The previous months closing balance
What is the closing balance?
Net cash flow + opening balance
Give an example of an inflow/ receipt
-Money from owners
-Cash from sales
Give an example of an outflow payment
-interest in loans
-repaying borrowed money
What is the net cash flow?
The receipts of a business minus its payments . Either positive or negative
What is the cumulative cash flow?
The sum of cash that flows into a business over time
What is the supplier of a business?
A business that sells ( supplies) products to another business
What is primary research? (Field research)
Collecting information that does not yet exist - I.e asking questions .first hand contact with the customers is valuable to a business in understanding their market
What is secondary research? (Desk research)
Collecting data that already exists - I.e internet research
What is an advantage of primary research?
- up to date
- appropriate to the specific business
- effective qualitative data
- direct customer contact
What is an advantage of secondary research?
- more general
- less time consuming
- effective at collecting quantitative data
What is an example of primary research?
What is an example of secondary research?
- Market reports
- telephone directories
- government statistics
- local newspapers
- internet sites
What is qualitative data?
Information about opinions, judgements and attitudes
What is quantitative data?
Data that can be expressed as numbers and statistically analysed
What is a market
where buyers and sellers meet to exchange goods and services
Define a business
an organisation whose purpose is to produce goods and services to meet the needs of customers. A business might produce its own goods or buy them from a supplier