1.3 Flashcards
Aims:
a general statement of where you’re
heading, for example ‘to get to university’.
Survival:
keeping the business going, which
ultimately depends on determination and cash.
Objectives:
a clear, measurable goal, so
success or failure is clear to see.
Market share:
the percentage of a market held
by one company or brand.
Fixed costs:
costs that don’t vary just because
output varies, for example rent.
Interest:
the charges made by banks for the
cash they have lent to a business, for example six
per cent per year.
Break-even chart:
a graph showing a company’s
revenue and total costs at all possible levels of output.
Profit:
the difference between revenue and total
costs; if the figure is negative the business is making a loss.
Total costs:
all the costs for a set period of time,
such as a month.
Revenue:
the total value of the sales made within
a set period of time, such as a month.
Variable costs:
costs that vary as output varies,
such as raw materials.
Break-even:
the level of sales at which total
costs are equal to total revenue. At this point the business is making neither a profit nor a loss.
Margin of safety:
the amount by which demand can fall before the business starts making losses.
Crowdfunding:
raising capital online from
many small investors
Dividends:
payments made to shareholders
from the company’s yearly profits. The
directors of the company decide how large a
dividend payment to make; in a bad year they can decide on zero.
