1.6 Business Planning Flashcards
Which of the following is an advantage to a new business start-up of producing a business plan?
It will hep test financial viability
In which section of the business plan would you expect to find details about market size and market research?
Market overview
Which of the following best describes a business plan? A written document that describes:
The business, its objectives, strategies, financial forecasts in the market
Which of the following is the formula for total costs?
Total fixed costs plus total variable costs
Which of the following is a drawback of business planning?
The plan will need to be constantly updated
Which of the following best defines the term variable cost? A cost which:
Changes according to output
A business makes a profit when:
Total revenue is greater than the total costs
Which of the following is a functional area of a business?
Operations
A business sells 12,000 units per year. Fixed costs per year are £50,000 and variable costs are
£2.50 per unit. The business’s total costs are:
80000
Which of the following is a major problem that an entrepreneur might encounter when writing a business plan for the first time?
Forecasting the business makes from selling its goods or services
Details regarding how many staff the business will need to employ, their pay rates and job descriptions would be found in which section of a business plan?
Himan resources
The fixed costs of a business are £300,000 per year and variable costs are £2.00 per unit. The business sells 200,000 units per year at a selling price of £5.00. The profit made per year is:
300000
