Sources of Finance
Borrowing money from the bank and repaying it overtime with interest
What is a bank loan?
The point at which no profit/loss made
What is break-even point?
A plan of how the business expects to spend and receive money over the next few months
What is a cash budget?
What is Income Statement?
Technology allowing you to transfer money between accounts and pay for bills without having to go physically into the bank
What is online banking?
You do not have to pay this money back but usually comes with strict terms and conditions
What is a grant?
Costs which stay the same no matter how many units are produced e.g. rent
What is fixed costs?
Items the business plans on paying for
What are payments?
Items which the business must pay for e.g. rent, electricity
What is expenses?
Technology used to type up letters to remind customers to pay their bill on time
What is Word?
A long-term loan used to pay for property/land
What is a mortgage?
Costs which change depending on the level of output e.g. raw materials
What is variable costs?
Items the business plans on receiving
What are receipts?
Money made from selling goods
What is sales revenue?
Technology which uses formula to calculate profit
What is a Spreadsheet?
Putting down a deposit on an item and paying for it in monthly instalments
What is Hire Purchase?
Fixed Costs and Variable Costs added together
What is total costs?
Having more receipts than payments
What is surplus?
Profit made after expenses have been subtracted
What is Profit for the Year?
Technology used to create presentations about the business' financial performance
What is PowerPoint?
What is leasing?
The point after the break-even point
What is profit?
Having more payments than receipts
What is deficit?
Profit made from buying and selling goods - before expenses have been subtracted
What is Gross Profit?
Technology used to create charts/graphs to show profit levels over time
What is a spreadsheet?