Business Flashcards
What are the risks of starting a business?
Financial loss, business failure and lack of security.
What are the rewards of starting a business?
Profit, business success and independence.
How do new businesses come about?
Original ideas or adapting existing products or sevices.
Why do new businesses come about?
Products or services become obsolete or changes in technology and consumer taste.
What is an aim?
An aim is what you want to achieve.
What is an objective?
Objectives are specific steps towards reaching aims.
What is Qualitative data?
Qualitative data is literacy, views and opinions or thoughts.
What is Quantitative data?
Quantitative data is numbers and statistics.
What is the equation for total cost?
Total fixed cost + total variable cost
What is the equation for revenue?
Total sales x price of sales.
What is the equation for profit?
Revenue - total costs
What is the equation to workout the break even point?
Fixed cost/selling price - variable cost
How do you work out the average unit costs?
total cost/output
If a business runs out of cash they might not be able to pay?
-Employees
-Creditors
-Suppliers
