Business 1.3 Flashcards
Aims
a general statement of where you’re
heading, for example ‘to get to university’.
Market share
the percentage of a market held
by one company or brand.
Objectives
a clear, measurable goal, so
success or failure is clear to see.
SMART objectives
targets that are specifi c,
measurable, achievable, realistic and time-bound.
Survival
keeping the business going, which ultimately depends on determination and cash.
Fixed cost
costs that don’t vary just because output varies, for example rent.
Interest
the charges made by banks for the cash they have lent to a business, for example six
per cent per year.
Profit
the difference between revenue and total costs; if the figure is negative the business is
making a loss.
Revenue
the total value of the sales made within a set period of time, such as a month.
Total costs
all the costs for a set period of time, such as a month.
Variable costs
costs that vary as output varies,
such as raw materials.
Break even
the level of sales at which total
costs are equal to total revenue. At this point the business is making neither a profit nor a
loss.
Break even chart
a graph showing a company’s
revenue and total costs at all possible levels of
output.
Margin of safety
the amount by which demand
can fall before the business starts making losses.
Cash
the money the firm holds in notes and coins, and in its bank accounts.
