Business and Finance Terms

Front

Bank overdraft

Back

Borrowings from a bank on a current account which are payable on demand.

Front

Breakeven output (or point)

Back

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.

Front

Budget

Back

A detailed plan of income and expenses expected over a certain period of time.

Front

Business angel

Back

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.

Front

Cash flow

Back

The movements of cash into ('inflows') and out of ('outflows') a business.

Front

Cash flow forecast

Back

A projection, usually by week or month, of the likely cash inflows and outflows in a business.

Front

Demand

Back

The amount of a product or service that customers are willing and able to pay at a given time.

Front

Demographic

Back

Defining a market in terms of social-economic factors such as segmentation age, income, class etc.

Front

Elasticity of demand

Back

The responsiveness of demand to a change in price or incomes.

Front

Expenditure budget

Back

The budget which sets out the expected costs to be incurred by the firm, usually split into various categories (e.g., production, marketing, administration).