Financial Objectives (AQA A-Level Business): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Revenue definition
Revenue definition
Total income from selling goods/services (sales revenue/turnover)
Cost minimisation objective
Cost minimisation objective
Achieving lowest possible unit costs of production
Gross profit formula
Gross profit formula
Sales Revenue - Direct Costs
Operating profit formula
Operating profit formula
Gross Profit - Expenses (or Sales Revenue - All Costs)
Profit for the year formula
Profit for the year formula
Operating Profit + Other Income - Other Expenditure
Cash flow definition
Cash flow definition
Money moving into and out of a business over a period
Why cash flow is vital
Why cash flow is vital
Business can't survive without cash to meet immediate expenses
Capital expenditure definition
Capital expenditure definition
Money spent on fixed assets (long-term assets)
ROI formula
ROI formula
(Return/Capital Invested) × 100
Capital structure meaning
Capital structure meaning
Balance between equity (shares) and borrowing (loans)