Sport as a business. Adam Trunks. Outcomes. You will be able to understand the basic terminology's used in a business/sports business You will be able to relate these topics to your own sports business You will be able to complete a cash flow forecast for your business. CASH FLOW.
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- I want you to come up with a sentence you think best describes cash flow in a business.
- These are detailed estimatesof a firm’s future cash flow inflows & outflows per month. This allows a firm to plan.
This maybe arranging overdrafts when a short-term negative cash flow is expected.
Task – Complete the cash flow forecast for your business or own personal account.
- Allowing too much credit
- Unexpected events
- Lack of planning
- Are short – term loans which must be repaid within a year or less. They will include a bank overdraft and any trade credit.
- Is a loan to the business from suppliers, known as creditors. There is often a time lapse between receiving goods and services and settling the bills. Creditors are in effect providing an interest free loan.
- Also known as long term liabilities
– Annualised percentage rate. Measures the interest charges on a loan or credit as a percentage of a loan amount outstanding.
TV adverts – quick quid 2000%!!
- Venture Capital.
- Premises (only if it is owned by the company)
- A firm purchasing a particular asset pays a deposit to a finance house which then settles the amount outstanding in return for a stream of repayments by instalment, typically over 3-5 years.
After all repayments are made, the product becomes the property of the business.
You can rent premises by leasing them or if you require premises for a short term - for instance, to complete a large order - then consider a licence rather than a lease.
- Is the value of the sum invested in the business by the shareholders. They cannot get their money back, so managers know for certain that they will always have these funds.
- Is a total long-term finance for the business and includes share capital, retained profits and loans with more than one year to run