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Flashcards in Unit 1 Deck (25):
1

What is a franchise

The right given by one business to other businesses to sell goods by its name

2

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

3

What is a cash flow forecast?

This predicts how cash flows through a business overtime.

4

What is the benefit of a cash flow forecast?

A business can use it to identify periods where it may have cash flow problems

5

How to work out receipts?

Net cash flow + total payment

6

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

7

How to work or the net cash flow?

Receipts - total payments

Opening balance - closing balance

8

What is the opening balance?

The previous months closing balance

9

What is the closing balance?

Net cash flow + opening balance

10

Give an example of an inflow/ receipt

-Money from owners
-Bank loans
-Cash from sales

11

Give an example of an outflow payment

-wages
-raw materials
-interest in loans
-bills
-advertising
-repaying borrowed money
-buying equipment

12

What is the net cash flow?

The receipts of a business minus its payments . Either positive or negative

13

What is the cumulative cash flow?

The sum of cash that flows into a business over time

14

What is the supplier of a business?

A business that sells ( supplies) products to another business

15

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

16

What is secondary research? (Desk research)

Collecting data that already exists - I.e internet research

17

What is an advantage of primary research?

-more accurate
- up to date
- appropriate to the specific business
- effective qualitative data
- direct customer contact

18

What is an advantage of secondary research?

- more general
- less time consuming
- effective at collecting quantitative data

19

What is an example of primary research?

-surveys
- questionnaires
- Experiments
- Observations
-Focus Groups

20

What is an example of secondary research?

-Sales data
- Market reports
- telephone directories
- government statistics
- local newspapers
- internet sites

21

What is qualitative data?

Information about opinions, judgements and attitudes

22

What is quantitative data?

Data that can be expressed as numbers and statistically analysed
(Quantity-> numbers)

23

What is a market

where buyers and sellers meet to exchange goods and services

24

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

25

What is the purpose of market mapping?

To help a business to identify gaps in the market