1.3 Definitions Flashcards
Revenue-definition
Revenue is any money that a business makes from selling its goods and services
Fixed Costs-definition
Fixed costs are expenses a business has to pay which do not change with output, eg rent.
Variable Costs-definition
Variable costs are expenses a business has to pay which change directly with output, eg raw materials.
Profit-definition
The profit made by a business is the money that is left over once all of the expenses incurred in running the business have been paid.
Interest-definition
An interest rate is the cost of borrowing money or the return for investing money.
Breakeven-definition
Break-even is the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss.
Aim-definition
A business aim is the long-term overall target or goal of the business.
Objective-definition
Business objectives are the short-term steps a business needs to take to meet its overall aims.
Market Share-definition
The proportion of total sales in a market made by one business.
Entrepreneur-definition
A person who takes the risk to set up their own business.
