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Aims

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## Tags and Description

### 36 Terms

1

Aims

A general statement of where you're heading, for example 'to get to university'

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2

Market share

The percentage of a market held by one company or brand.

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3

Objectives

A clear, measurable goal, so success or failure is clear to see

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4

SMART objectives

Targets that are specific, measurable, achievable, realistic and time-bound

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5

Social objectives

Likely to be non-financial and designed to improve the quality of life for a community

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6

Survival

Keeping the business going, which ultimately depends on determination and cash

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7

Fixed costs

Costs that don't vary just because output varies, for example rent (sometimes called overheads)

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8

Variable costs

Costs that DO vary with changes in output, for example packaging

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9

Interest

The charges made by banks for the cash they lent to a business, for example six per cent per year

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10

Profit

= TOTAL REVENUE - TOTAL COSTS The amount of revenue left over once costs have been deducted.

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11

Revenue

= PRICE x QUANTITY The total value of the sales made within a set period of time

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12

Total costs

= VARIABLE COSTS + FIXED COSTS All the costs (both fixed and variable) for a set period of time

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13

Break-even

The level of sales at which total costs are equal to total revenue. At this point the business is making neither a profit nor a loss. FIXED COSTS = --------------------------------------------- PRICE - VARIABLE COSTS PER UNIT

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14

Break-even chart

A graph showing a company's revenue and total costs at all possible levels of output

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15

Margin of safety

The amount by which demand can fall before the business starts making losses = SALES - BREAK-EVEN OUTPUT

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16

Cash

The money a firm holds in notes, coins and in its bank accounts

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17

Cash flow

The movement of money into and out of the firm's bank account

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18

Insolvency

What a business lacks the cash to pay its debts

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19

Overdraft

A facility offered by a bank that allows an account holder to borrow money at short notice

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20

Overdraft facility

An agreed maximum level of overdraft

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21

Cash flow forecast

Estimating the likely flows of cash over the coming months and, therefore, the overall state of the bank balance

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22

Closing balance

The amount of cash left in the bank at the end of the month

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23

Negative cash flow

When cash outflows are greater than cash inflows

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24

Stable cash flow

When cash outflows are the same as cash inflows

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25

Positive cash flow

When cash outflows are less than cash inflows

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26

Net cash flow

Cash in minus cash out over a period of time

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27

Opening balance

The amount of cash in the bank at the start of the month

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28

Crowdfunding

Raising capital online from many small investors (but not through the stock exchange)

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29

Dividends

Payments made to shareholders from the company's yearly profits. Company directors decide how much, if any, they will pay in dividends

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30

Retained profit

Profit kept within the business (not paid out in dividends)

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31

Share capital

Raising finance by selling part ownership in the business. Shareholders have the right to question the directors and to receive part of the yearly profits as dividends

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32

When a supplier provides goods but is willing to wait to be paid - for perhaps up to three months.

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33

Venture Capital

A combination of share capital and loan capital, proved by an investor willing to take a chance on the success of a small to medium-sized business.

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34

Loans

Money lent (often by a bank) which will be paid back over a period of time, with Interest.

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35

Asset

Any item of value that a business owns eg machinery

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36

Security

When the lender asks the borrower to put up an asset which can be taken if the loan is not paid back

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