Sources of Finance
This types of spending makes the business more productive by buying assets.
Capital expenditure
This term refers to all the ways (products/services, etc) a business makes money
Revenue streams
items of value that a business plans to sell within 12 months
current assets
Capital employed is made up of ....
non-current liabilities and equity
the formula for net cash flow
cash inflows - cash outflows
This type of external finance uses online platforms using a large number of investors
crowdfunding
What company makes the most revenue per minute (almost $1m! per minute)
Amazon
The formula for net assets
total assets - total liabilities
The most profitable US company?
Apple
On a cash flow forecast, what is the first thing listed?
opening balance
The term used when a company first sells its shares on the stock market
Initial public offering
What is the formula for total costs?
TC = FC + VC
The 2 items in the balance sheet that make up equity
retained earnings and share capital
What does ROCE stand for?
Return on Capital Employed
If a company cannot pay it's debts, it is in a state of ...
insolvency
The name of the TV show where business angels invest in small businesses.
Shark Tank
Another word for indirect costs
overheads
In the P&L account, these are a firm’s indirect costs of production
expenses
What is the only way to improve gross profit margin?
decrease cost of sales
how can a business improve its cash inflows
have customers pay with cash
do not accept credit payments
How much (as a %) of Scrub Daddy did Lauri buy?
Bonus 100 - for how much money?
20% for $200,000
What is the number one benefit for a business of having many revenue streams?
Risk reduction!
You are creating a P&L account for a non-profit social enterprise. What is the last item listed on the document?
retained surplus
When using the acid-test ratio, what do we minus from current assets?
stock
give 3 examples of cash outflows that are on the official IB cash flow forecast.
cost of sales
heating and lighting
delivery
salaries and wages
packaging
rent