Flashcards
1.3 Keywords - Putting a business idea into practice
Cards in this deck (46)
- 1Financial ObjectivesTargets expressed in money terms such as making a profit, earning income or building wealth.
- 2SMARTSpecific, measurable, achievable, realistic and time-constrained.
- 3DeterminationThe drive to succeed in business. To show commitment to an idea or setting up a business.
- 4InitiativeTo work independently and be able to make the first move in business.
- 5Taking RisksA skill shown by entrepreneurs. It can be risky to own your own business.
- 6Making DecisionsTo be in charge of making a good judgement. An entrepreneur will listen and take in information to ensure they make the right decision.
- 7PlanningPlanning is essential to any successful business. Clear objectives have to be set for the long term and how these objectives will be met in the short term.
- 8PersuasionA skill of an entrepreneur. To be able to convince a customer they should buy the product/ service. Or it could also mean negotiating with a supplier to lower their prices.
- 9Showing LeadershipEntrepreneurs should have a vision of where the business is heading, be good at planning and have self-confidence. These are all leadership skills to succeed.
- 10Revenues Sales Revenue Turnover Sales TurnoverThe amount of income received from selling goods or services over a period of time
- 11Total RevenueTR = P x Q
Total Revenue = Price x Quantity - 12Sales volumeThe number of items or products or services sold by a business over a period of time.
- 13Fixed costsCosts which do not vary with the output produced such as rent, business rates, advertising costs, administration costs and salaries.
- 14Total CostsAll the costs of a business; it is equal to fixed costs plus variable costs.
- 15Total CostsTC = FC + VC
Total Costs = Fixed Costs + Variable Costs - 16Variable CostsCosts which change directly with the number of products made by a business such as the cost of buying raw materials.
- 17ProfitOccurs when the revenues of a business are greater than its costs over a period of time.
- 18LossOccurs when the revenues of a business are less that the costs over a period of time.
- 19Profit/ LossProfit/ Loss = Total Revenue – Total Cost
- 20CashNotes, coins and money in the bank
- 21Cash FlowThe flow of cash into and out of a business
- 22InflowThe cash flowing into a business, its receipts
- 23OutflowThe cash flowing out of a business, its payments
- 24Net Cash FlowThe receipts of a business minus its payments
- 25InsolvencyWhen a business can no longer pay its debts
- 26Cash Flow ForecastA prediction of how cash will flow through a business in a period of time in future
- 27Opening BalanceThe amount of money in a business at the start of the month
- 28Closing BalanceThe amount of money in a business at the end of the month
- 29Cumulative Cash FlowThe sum of cash that flows into a business over time
- 30Trade CreditWhere a supplier gives a customer a period of time to pay a bill (or invoice) for goods or services once they have been delivered
- 31StocksMaterials that a business holds. Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers
- 32Business PlanA plan for the development of a business giving forecasts such as sales, costs and cash flow
- 33Long term financeSources of money for businesses that are borrowed or invested typically for more than a year
- 34Short term financeSources of money for businesses that may have to be repaid with immediately or fairly quickly, such as an overdraft, usually within a year.
- 35Personal SavingsMoney that has been set aside and not spent by individuals and households.
- 36Share CapitalThe monetary value of a company which belongs to its shareholders, for example, if five people each invest £10,000 into a business, the share capital will be £50,000
- 37ShareholdersThe owners of a company
- 38Venture CapitalistAn individual or company which buys shares in what they hope will be a fast growing company with a long term view of selling the shares at a profit.
- 39LoanBorrowing a sum of money which has to be repaid with interest over a period of time, such as 1-5 years.
- 40Security (or collateral)Assets owned by a business which are used to guarantee repayments of a loan; if the business fails to pay off the loan, the lender can sell what has been offered as security.
- 41MortgageA loan where property is used as security.
- 42DividendA share of the profits of a company received by shareholders who own shares.
- 43Retained ProfitProfit which is kept back in the business and used to pay for investment in the business.
- 44LeasingRenting equipment or premises.
- 45Overdraft facilityBorrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn.
- 46FactoringA source of finance where a business is able to receive cash immediately for the invoices it has issued from a factor, such as a bank, instead of waiting the typical 30 days to be paid.
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- GCSE Business studies Flashcards on 1.3 Keywords - Putting a business idea into practice, created by Mr_Lambert_Hungerhil on 21/01/2016.
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- Mr_Lambert_Hungerhil
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