Basic Words To Understand In Business Flashcards
What does ROI stand for in business?
Return on Investment
What is the definition of revenue in business?
Income generated from the sale of goods or services
True or False: Profit is the amount of money left after deducting expenses from revenue.
True
What is a balance sheet used for in business?
To show a company’s financial position at a specific point in time
Fill in the blank: SWOT analysis stands for Strengths, Weaknesses, Opportunities, and ____________.
Threats
What is the purpose of a business plan?
To outline the goals and strategies of a business
What does KPI stand for in business?
Key Performance Indicator
True or False: Cash flow is the movement of money in and out of a business.
True
What is the definition of a target market in business?
A specific group of consumers that a company aims to reach with its products or services
Fill in the blank: ROI is calculated by dividing the ____________ by the cost of the investment.
Return
What is the difference between revenue and profit?
Revenue is total income generated, while profit is the amount left after expenses are deducted
What does SWOT analysis help businesses identify?
Internal strengths and weaknesses, as well as external opportunities and threats
True or False: A business model describes how a company creates, delivers, and captures value.
True
What is the purpose of market research in business?
To gather information about customers, competitors, and market trends
What is the definition of a profit margin in business?
The percentage of revenue that represents profit after expenses are deducted
