1.6 Business Planning Flashcards
1
Q
What is a business plan
A
A doccument setting out what a business does and what a business wants to achieve
2
Q
What is business planning
A
The process of producing a business plan
3
Q
Uncertainty
A
Occurs when there is a lack of infomation about a situation. This means the outcome or consequences are very difficult to predict
4
Q
Risk
A
Possiblity of something going wrong
5
Q
What is revenue
A
Revenue is the income that a firm recieves from selling its goods or services. It is measured by the number of units sold multiplied by the cost
6
Q
Total cost
A
Are fixed costs are fixed plus variable costs
7
Q
Fixed cost
A
Are those costs that do not change when a business changes its output
8
Q
Variable costs
A
Are costs that vary directly with the business’s level of output
