Financial terminology is essential for confident decision-making. Understand three core terms: Revenue (income from sales), Profit (revenue minus costs), and Cash Flow (money in/out of bank account). Critical distinction: you can be profitable but run out of cash.

Develop financial literacy by learning key jargon including EBITDA, Accruals, Gross vs. Net, Direct/Indirect costs, and OpEx (daily running) vs. CapEx (long term investments). Apply this knowledge to challenge financial discussions confidently and participate in business decisions with authority.

Key Takeaways

• Understand key financial terms and jargon (revenue, profit, cash flow) and why the differences between them are critical for business decision-making
• Apply knowledge of direct/indirect costs, fixed/variable costs, and how profit differs from cash to improve business understanding
• Implement financial literacy to confidently challenge finance discussions, ask questions, and participate in business decisions