Flashcards
Unit 3.3: Effective Financial Management
Cards in this deck (15)
- 1OverdraftPermission to take more form a current account than is deposited.
- 2Credit TermsWhen buying goods or services and paying for them after they have been received, this is the amount that has to be paid back and by when.
- 3DestockingThis is an attempt to improve cash flow by selling stock at a reduced rate. Having cash tied up in stock is costly.
- 4Fixed CostsCosts which remain constant even if production or sales increases e.g.rent
- 5Variable CostsCosts which alter if sales or production increases e.g. manufacturing costs.
- 6EU GrantA subsidy available to new businesses which set up in areas of regeneration.
- 7Just In Time (JIT)A system designed to reduce cash tied up in stock - firms buy raw material only when they need them and produce goods to order.
- 8ProfitThe amount of money a business is left which after paying all of its costs.
Revenue - Cost = Profit - 9RevenueThe amount of money earned by a firm from selling its product/service.
Price x Quantity = Revenue - 10Break Even PointThe level of sales at which total cost is the same as total revenue.
- 11Break Even ChartA graph which shows the total costs/total revenue and the breakeven point.
- 12Margin of SafetyThe amount sales can fall before the firm's profit is wiped out.
- 13External Sources of FinancesSources of finance from outside the company e.g.bank loans
- 14Internal Sources of FinanceSources of finance the company already has e.g. selling assets.
- 15FlotationWhen a firm offers its shares for sale to the public for the first time on the stock exchange.
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- GCSE Business Studies (Unit 3) Flashcards on Unit 3.3: Effective Financial Management, created by nk_ on 20/10/2013.
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- nk_ · Oct 2013
- Updated
- Jan 6, 2017
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