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Businesses need to consider how they will fund their activities when starting up as well as their day-to-day operations. Various costs need to be covered, such as equipment, stock and paying bills.

Financial terms and calculations includes revenue, costs, profits and loss, average rate of return, and break even. These financial elements inform key decisions in every business.

It is important to understand the difference between gross and net profit. Knowing the gross profit margin, net profit margin and average rate of return is essential when making business decisions.

The management of cash and cash flow is important as it can prevent a business from failing. Cash flow is the way that money moves in and out of a business and its bank accounts.