Business Notes
Purchase order
Delivery note
Goods received note
Invoice
Statement of account
Cheque
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Problems-too much stock
• Money tied up
• Stock wont sell
• Lose customers
Increase in Variable cost (affects to break-even)
• Break even would rise
• Need to sell more
• Context could include new break even point
Leading to
• Reduce prices to sell more
• Increase prices to make more
• Reduce fixed costs
BREAK EVEN POINT= Fixed cost
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(Selling price-variable cost)
Break-even analysis
• Identifies sales levels required for profit
• Establish break even at different cost/sales structures
Profit and loss account will show the profit within the business and the overheads of the business.
A fixed asset is a possession of a business that is owed over a year period.
A current asset is a possession of a business that is owned for less than a year.
Balance sheet
• Shows the value of a business
• Show business ability to make repayments
• Lists what the business owes & owns
• Bank would see if there are any assets to secure loan against
• Net total assets are more than the amount of loan
Venture Capitalist
• Long term finance for unquoted companies
• A share in the business
• Source of external finance
Advantages
-Not secured
-Dividends will not need
to be paid if losses made.
-Expansion can take place.
Bank loan
Advantages
...