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Cash flow describes the movement of cash into and out of a business. The cash INFLOW is the money coming into a business, where as the cash OUTFLOW is the money flowing out of a business. Cash flow is not...

When there are low levels of sales, a business is not selling enough units for revenue to cover costs. Therefore a loss is made. As more items are sold, the total revenue increases and covers more of the ...

This is a short term method of finance where credit notes are sold to factor houses for discounted prices. it allows a business to get their money instantly adn so improves cash flow. However factor house...

Diversification is the name given to the growth strategy where a business markets new products in new markets. It is a risky strategy because the business is moving into a new area of a market in which it...

Breakeven is the output a company needs to meet to make their revenue equal costs. It's worked out using the formula Fixed costs divided by selling price minus variable costs.