16.11.2020

Question 1

That is the formula for Total revenue?

Answer 1

Units sold x Selling price

Question 2

That is the formula for Total cost?

Answer 2

Variable + Fixed costs

Question 3

That is the formula for Profit?

Answer 3

Total revenue - Total costs

Question 4

What is a Loss?

Answer 4

When Total costs is higher then Total revenue

Question 5

What is a Profit?

Answer 5

When Total cost is lower then Total revenue

Question 6

What is Break-even?

Answer 6

When Total cost and Total revenue is equal. You’re not making profit or loss but all your costs are covered

Question 7

What is the Primary sector?

Answer 7

Businesses that are involved with collecting raw materials

Question 8

What is the Secondary sector?

Answer 8

Businesses that are involved with manufacturing

Question 9

What is the Tertiary sector?

Answer 9

Businesses that are involved with selling goods or providing services

Question 10

What is a Good?

Answer 10

A physical thing you pay to own

Question 11

What is a Service?

Answer 11

An experience you pay for but don’t own

Question 12

What is the Private sector?

Answer 12

Organisations owned by individuals and are driven by profit

Question 13

What is the Public sector?

Answer 13

Organisations owned by the government to benefit the community

Question 14

What is a Franchise?

Answer 14

Selling rights to your company name and product

Question 15

What is a Franchisee?

Answer 15

An individual buys part of a Franchise

Question 16

What is a Franchisor?

Answer 16

The person selling parts of the Franchise

Question 17

What are Royalties?

Answer 17

Paying a % of the sales generated and payed to the Franchisor

Question 18

What are Start up costs?

Answer 18

Costs that occur when a business is set up eg. Furniture

Question 19

What are Operating costs?

Answer 19

Costs that occur day-to-day of running the business.

Question 20

What are Variable costs?

Answer 20

Costs that change based on output

Question 21

What are Fixed costs?

Answer 21

Costs that don’t change based on output

Question 22

What are Wages?

Answer 22

Hourly pay ( Variable costs )

Question 23

What are Salaries?

Answer 23

Yearly rate ( Fixed costs )

Question 24

What is Unlimited liability?

Answer 24

When the owner of a company and business debts are connected. Owners possessions can be taken to pay company debts.

Question 25

What is Limited liability?

Answer 25

When the an investor or owner only lose what they put in. Personal possessions are separate from the company.

Question 26

What is Market research?

Answer 26

Finding out what your customers want or what you should improve. It also involves seeing what competitors are doing

Question 27

What is Primary Market research?

Answer 27

Where a company will gather data from it’s own source for it’s own specific reasons

Question 28

What is Secondary Market research?

Answer 28

Where a company uses information that has already been gathered

Question 29

What is Advertisement?

Answer 29

A way of informing or getting potential customers.

Question 30

What is a Sole trader?

Answer 30

Where one person is in charge of the who company and is responsible for everything

Question 31

What is a Partnership?

Answer 31

Where 2-20 people share responsibility for a company and share costs.

Question 32

What is an Advantages of being Sole trader?

Answer 32

You are your own boss

You don’t share profit

Question 33

What is an Advantage of being in a Partnership?

Answer 33

There is someone in charge when you’re ill

Less responsibility for one person

Question 34

What is Revenue sometimes referred to as?

Answer 34

Turnover

Question 35

If a Company reduces a product’s price, what does this mean for their revenue?

Answer 35

A decrease in price could lead to an increase or decrease in revenue. It will depend on how many products are sold.

Question 36

Who is Limited liability an Advantage to?

Answer 36

Shareholders