There are many arguments around a board meeting amongst members who take differing views of how to run the company or charity they represent. There are some folk who feel that it’s best to still put on an event even if the results are only ‘break even’ – now what exactly do we mean by that? Well it’s the point where income exactly matches the expenditure. This is not good practice because the whole point about being in business of any sort is to make money i.e. make more money from selling the service or goods than it costs us to supply them, taking every single element of production into account. Others may feel that just having a presence is good enough as other ‘events’ will bring in the money. Unfortunately this does not hold water and it can become a habit to allow ‘break even’ results more often than is safe.
Capital is any amount invested in a company that has a realistic value or benefit to own, such as an item of machinery,, patents or actual financial assets such as cash. Capital expenditure (CAPEX) this is funds used by the company to buy, maintain or improve its fixed assets such as buildings, vehicles or land. Now, how about Cost-Push inflation, this ocurs when production input costs, such as wages and raw materials rise and producers pass the increased costs onto the consumer via price rises. Whereas Demand-Pull inflation is when demand is high and suppliers increase prices until the demand decreases. Fiscal year is the financial years in business speak. It is a set period used to calculate financial statements. A firm’s fiscal year can run over any 12 month period, although the most common year ends are 31 March and 31 December.