1.3 putting a buisness idea into practice Flashcards
what are business aims?
things a business wants in the future( there aims and objectives)
what are business objectives?
a specific measurable target that a business sets to achieve its aims
what does SMART stand for (business aims)?
S pesific
M easurable
A chievable
R elavant
T ime-bound
what are examples of financial aims
-profit maximisation
-revenue growth
-cost reduction
what are examples of business aims
-profit maximasiation
-growth
-customer satisfaction
what are examples of non financial aims
-customer satisfaction
-employee engagement
-brand reputation
why do businesses aims change
-growth and expantion
-technology expantiment
-stakeholder feedback
what are fixed costs?
expenses that do not change within the level of production or sales
what are examples of fixed costs?
-rent
-salaries
-insurance
what are variable costs?
expenses that change with the level or production of sales
what are examples of variable costs?
-raw materials
-shipping costs
what are total costs
the sum of all expenses a business has spent in producing goods or services
what is the formula for total costs?
total costs= variable costs +fixed costs
what are start up costs
inital expenses pays before it begins
what is the formula for total variable costs?
total variable costs=variable cost per unit x number of units sold
what does revenue mean
total income generated from normal buisness operations
what is the forumla for revenue?
revenue= price per unit x quantity sold
