Financing a Business
Describes a business that is unable to payback its debt.
What is Insolvency?
A business with 1-4 employees
How many employees does a Micro business have
A tool to analyse the point of a business where total revenue equals total expenses or costs.
Break-even analysis
Relates to a business’s ability to meet its debt obligations in the long term, while maintaining high value of its assets.
What is Solvency?
If a business has 1-19 members
How many members make up a small business.
What type of Equation is: Assets = liabilities + owner’s equity
Accounting Equation
Relates to a business’s ability to convert assets quickly to cash, which may then be used to cover expenses.
What is liquidity
A business with 19-200 employees
How many employees in a medium size business?
What type of finance exists when a business borrows funds from an external lender or financial institute.
Debt finance
Name any product with low volume sales and high profit margin.
Luxury car, high end Furniture, upmarket restaurant.
A business with over 200 employees
How many employees does a large business have?
What type of finance is, the investment made in the business by the owner, or by others who see the business’s potential to make a profit and want to receive some of this profit in return for their investment.
Equity finance
Name any Business with High volume sales and low profit margin.
Grocery stores, fast food restaurants
SME classification stands for?
Small to Medium Enterprise
Name one type of Equity finance.
Self-funding, venture capitalist, private investor crowd funding,