| A | B |
|---|
| sources of finance | Bank loan, government grant and borrowing money from friends are all ? |
| transaction | An agreement between two parties to exchange goods or services for payment |
| debtors | Term that describes people who owe you money |
| profit | when income is greater than expenses |
| loss | when expenses are greater than income |
| break-even | when expenses is equal to income – no profits, no losses |
| bank manager, accountant or lawyer | who you would approach for financial advise |
| fixed | name given to costs that stay the same regardless of level of output |
| variable | name given to costs that change with the level of output |
| total costs | fixed costs and variable costs = |
| rent, rates, insurance | examples of fixed costs |
| materials, packaging, electricity, gas | examples of variable costs |
| insolvency or liquidation | term used when a business can no longer run due to insufficient profits |
| business assets | what a company sells to pay off its debts if it becomes insolvent |
