Key Points Essay

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AQA AS Business Unit 1 – Revision Terms Term Adviser Bank loan Bank overdraft Break‐even Budget Business angel Business plan Cash flow Cash flow forecast Contribution Costs Demand Demographic segmentation Definition An external contact of a business who provides support and advice, sometimes for free A fixed amount loan from a bank which is generally used to finance long‐ term assets Borrowings from a bank on a current account which are payable on demand The point at which the total sales of a business equal total costs ‐ i.e. the business is making neither a profit nor a loss A detailed plan of income and expenses expected over a certain period of time A particular type of investor, usually a successful entrepreneur, who is willing to invest in high‐risk, high‐growth firms at a very early stage A detailed description of a new or existing business, including the company's strategy, aims and objectives, marketing & financial plan The movements of cash into ("inflows") and out of ("outflows") a business A projection, usually by week or month, of the likely cash inflows and outflows in a business The difference between total sales and total variable costs Amounts incurred by a business as a result of its trading operations The amount of a product or service that customers are willing and able to pay at a given time Defining a market in terms of social‐economic factors such as age, income, class etc Tick Elasticity of demand The responsiveness of demand to a change in price or incomes Enterprise Entrepreneur Fixed costs Franchisee Franchisor Inputs Limited liability The process by which new businesses are formed in order to offer products and services in a market An individual who sets up and runs a new business and takes on the risks associated with the business Costs
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