Gearing
Gearing in a Nutshell Gearing measures the proportion of a business’s capital that comes from long-term borrowing rather than shareholders’ equity. A gearing ratio above 50% means the company relies more on…
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8 min
Spec point: A-Level AQA – 3.5 Decision Making to Improve Financial Performance
Every note that covers this specification point.
Venture Capital
Venture Capital in a Nutshell Venture capital is a form of private equity finance provided to high-potential startups and small businesses by investors or specialist firms. It offers large sums of funding…
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9 min
Liquidity
Liquidity in a Nutshell Liquidity refers to how easily a business can convert its assets into cash to meet short-term financial obligations. A highly liquid business holds enough cash or near-cash assets…
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10 min
Private Equity
Private Equity in a Nutshell Private equity refers to investment capital provided by firms or funds directly into private companies, or used to take public companies private. It offers businesses large-scale funding…
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9 min
Cashflow
Cash Flow in a Nutshell Cash flow is the movement of money into and out of a business over a given period. Positive cash flow means more money is coming in than…
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10 min
Business Angel
Business Angel in a Nutshell A business angel is a high-net-worth individual who invests personal funds into early-stage companies in exchange for equity. They typically provide mentoring alongside capital. Key advantages include…
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10 min
Profitability
Profitability in a Nutshell Profitability measures how effectively a business turns its revenue into profit after all costs have been deducted. It is not the same as profit itself: a business earning…
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10 min
Bank Loan
Bank Loan in a Nutshell A bank loan is a fixed sum of money borrowed from a bank, repaid over an agreed period with interest. It provides businesses with a lump sum…
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10 min
Costs
Costs in a Nutshell Costs are the total expenses a business incurs to produce and sell its goods or services. They include fixed costs such as rent, variable costs such as raw…
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9 min
Overdraft
Overdraft in a Nutshell An overdraft is a short-term borrowing facility provided by a bank that allows a business or individual to spend more money than is currently in their account, up…
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11 min
Profit
Profit in a Nutshell Profit is the financial surplus remaining after a business deducts all its costs from its total revenue. It is calculated as total revenue minus total costs. Businesses use…
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9 min
Share Capital
Share Capital in a Nutshell Share capital is the money a company raises by selling shares to investors. It forms a key source of long-term finance for limited companies, both private (Ltd)…
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10 min