Busy. Please wait.

show password
Forgot Password?

Don't have an account?  Sign up 

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
remaining cards
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

3.1 - 3.5 Business


Business angels wealthy/entrepreneurial investors who risk money in small to medium sized businesses that have high growth potential
capital expenditure spending by businesses on fixed assets such as the purchase of land and buildings
creditors individuals that the business owes money to
debentures long-term loan to a business with the promise of fixed annual interest payments to the debenture holders
external financing getting sources of finance from outside the organization
factoring financial service whereby a factor (bank) collects debts on behalf of other business in return for a fee
leasing (hiring) leasing company owns the equipment and hires it out to the customer
non-recourse debt factoring financial service where a debt factor protects its customers against bad debts that they might incur
overdrafts allows business to spend in excess of the amount in its account up to a predetermined limit
revenue expenditure spending on a day-to-day running of a business
sources of finance where or how businesses obtain their funds
working capital (net current assets) day to day money that is available for the business
accounting rate of return investment appraisal method that calculates the average annual profit of an investment project; expressed as percentage of the initial sum of money invested
discounted cash flow investment appraisal technique that reduces the value of money that a business receives in future years
investment appraisal financial decision-making tool that helps managers to assess whether certain investment projects should be undertaken based mainly on quantitative techniques
net present value investment appraisal technique that calculates the total discounted cash flows, minus the initial cost of the investment project
payback period investment appraisal technique which estimates the length of time that it takes to recoup the initial cash outflow of a project
qualitative investment appraisal judging whether or not an investment project is worthwhile based on non-numerical factors; intuition rather than scientific decision-making
quantitative investment appraisal judging whether or not an investment project is worthwhile based on numerical factors
assets items owned by a business that have monetary value; can be fixed or current
cash actual money a business has received from selling its products; cash in hand or cash at bank
cash flow transfer or movement of money into and out of an organization
cash flow forecast financial document that shows the predicted future cash inflows and cash outflows for a business over a trading period
cash flow statement financial document that records the actual cash inflows and cash outflows for a business over a specified trading period
closing balance value of cash left in a business at the end of the month; closing balance = opening balance plus net cash flow
current assets resources that belong to a business that are intended to be used in the next twelve months (cash, debtors, stocks)
creditors businesses that have sold goods or services on credit and will collect this money at a future date (accounts payable)
debtors private customers or commercial customers who have purchased goods or services on credit and owe the business money (accounts receivable)
expenses spending in working capital of a business (costs of productions, salaries, raw materials, rent, advertising)
liabilities debts owed by a business
liquidity ability of a business to convert assets into cash quickly and without a fall in its value
liquidity crisis cash flow emergency situation where a business does not have enough cash to pay its current liabilities
net cash flow cash that is left over after cash outflows have been accounted for from the cash inflows
overheads costs not directly associated with the production process but necessary for providing and maintaining business operations (lighting, rent, security, insurance)
stocks (inventories) physical goods that a business has in its possession for further production
budget financial plan for expected revenue and expenditure for an organization for a given period of time
budget holder a person who has been placed in charge of a budget
budgetary control use of corrective measures taken to ensure that actual performance equals the budgeted performance
contingency fund name given to a reserve budget that is set aside for emergency and backup use
master budget overall or consolidated budget comprised of all the separate budgets within an organization
SMART budgeting budgets that are specficic, measurable, agreed, realistic, and time constrained
variance any discrepancy between actual outcomes and budgeted outcomes
Created by: randy_gardner