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business finance - Coggle Diagram

- - - - new target market
- - - - e.g
        
        Brexit
- - - - e.g
        
        machinery
        
        tools
        
        property
        
        office furniture
  - - - e.g
        
        for research
        
        premises (offices)
        
        legal
        
        website design
        
        marketing
  - - - e.g
        
        wages
        
        raw materials
        
        premise (offices)
        
        utility bills
  - - - e.g
        
        shark tank
- - - - advantages
        
        do not require to be repaid
      - disadvantages
        
        new businesses will not have any retained profits
    - - advantages
        
        make better use of capital
      - disadvantages
        
        may be time consuming to sell the assets
        
        new businesses usually have no surplus of assists to sell
    - - advantages
        
        reduces opportunity cost and storages cost high stock levels
      - disadvantages
        
        must be done carefully to avoid not meeting demands as a result of inadequate supplies
    - - advantages
        
        no interest
        
        readily available
  - - - e.g
        
        bank overdraft
        
        bank loans
        
        creditors
        
        debit factoring
    - - e.g
        
        leasing
        
        hair purchase
        
        medium term loads
    - - e.g
        
        shears
        
        debentures
        
        long term bank loans
        
        grants
  - - - organic growth
      - generating increasing sales
    - - long term
        
        shears
        
        loans
    - - shot term
        
        bank loans
        
        overdraft facilities
        
        trade credit
        
        lessing
- - - - people you owe money to
        
        e.g
        
        banks
        
        other businesses
    - - rent
      - insurance
      - tax
      - interest on debts
      - employee wages
  - - - cash from a bank
    - - cash from sales
      - cash from credit sales
    - - cash from putting capital into the business to buy a shear in the business
    - - cash flow dispose of assets
        
        e.g
        
        cars
- - - - record finances
      - transactions
      - paying employ wages and salaries
      - cash flow forecast budgeting
      - producing financial statements
  - - - a cost that changes with the production cost that changes when the level of output changes
    - - a cost that does not change with the production cost that change when the level of output does not change
    - - cash flow coming in by the companies operation during a given period
    - - profit = total revenue - total cost
    - - profit after working expenses not in the calculation of gross profit
    - - total cost - total production cost
    - - amount of output available to be sold above the brake even point where the business make a profit
    - - buying goods in a large quantity which is usually cheaper then buying in small
- - - - money spent on fixed assets which last for more then one year
    - - money spent on day-to-day expenses which do not involes the purchase of long-term asset
        
        e.g
        
        wages
        
        rent