What is Finance for?
To start up, run and expand a business
Cost & Profit
Revenue, cost and profit
What is short term finance?
It means the amount needs to pay any time you want
Short time means a short amount of profit
Short time finance means an amount of money paid back in an amount of time but not much, e.g : a year
What is long term finance?
Long term finance is a large amount of money paid back within a year
It means that an amount of money paid within over a few years, longer than short time
What is an internal source?
When funds are found outside the business
When funds are found inside the business
What is an external source?
Funds found outside the business
Funds found inside the business
Funds found from another shareholder
What's an overdraft?
When you put money onto your credit card
Where a bank allows a firm to take out more money than it has in its bank account
When you're in debt
What is revenue?
The profit of a business
X + X = revenue
Revenue is the income earned by a business over a period of time
How do you work out revenue?
revenue = price + quantity
revenue = price x quantity
revenue = price / quantity
What is profit?
Revenue x 2
Whatever's left of the revenue
profit = total revenue + total costs
profit = total revenue - total costs
profit = total revenue / total costs
