290369
| Question | Answer |
| Overdraft | Permission to take more form a current account than is deposited. |
| Credit Terms | When buying goods or services and paying for them after they have been received, this is the amount that has to be paid back and by when. |
| Destocking | This is an attempt to improve cash flow by selling stock at a reduced rate. Having cash tied up in stock is costly. |
| Fixed Costs | Costs which remain constant even if production or sales increases e.g.rent |
| Variable Costs | Costs which alter if sales or production increases e.g. manufacturing costs. |
| EU Grant | A subsidy available to new businesses which set up in areas of regeneration. |
| Just In Time (JIT) | A system designed to reduce cash tied up in stock - firms buy raw material only when they need them and produce goods to order. |
| Profit | The amount of money a business is left which after paying all of its costs. Revenue - Cost = Profit |
| Revenue | The amount of money earned by a firm from selling its product/service. Price x Quantity = Revenue |
| Break Even Point | The level of sales at which total cost is the same as total revenue. |
| Break Even Chart | A graph which shows the total costs/total revenue and the breakeven point. |
| Margin of Safety | The amount sales can fall before the firm's profit is wiped out. |
| External Sources of Finances | Sources of finance from outside the company e.g.bank loans |
| Internal Sources of Finance | Sources of finance the company already has e.g. selling assets. |
| Flotation | When a firm offers its shares for sale to the public for the first time on the stock exchange. |
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