1.6 Business Planning Flashcards
1
Q
Business plan
A
A document setting out what a business does and what it hopes to do in the future.
2
Q
Revenue
A
The income that a firm recieves from selling it’s goods or services.
3
Q
Fixed costs
A
The costs that do not change when a business changes it’s output.
4
Q
Variable costs
A
The costs that vary directly with the business’ level of output.
5
Q
Uncertaincy
A
Occurs where there is a lack of information about a situation. This means the outcome or consequences are very dfficult to predict.
6
Q
Risk
A
The possibility of something going wrong.
7
Q
Total costs
A
Fixed costs + Variable costs
