1.6 Business Planning Flashcards
1
Q
Business plan
A
A document setting out what a business does and what it hopes to achieve in the future
2
Q
Business planning
A
The process of producing a business plan
3
Q
Uncertainty
A
Occurs where there is a lack of information about a situation. This means the outcome or consequence are very difficult to predict
4
Q
Risk
A
The possibility of something going wrong
5
Q
Revenue
A
The income that a firm receives from selling its goods or services. It is also referred to as ‘turnover’. It is measured by the number of units sold multiplied by the price
6
Q
Total costs
A
Fixed costs plus variable costs
7
Q
Fixed costs
A
Those costs that do not change when a business changes its output
8
Q
Variable costs
A
The costs that vary directly with the business’s level of output
