Business Acumen Flashcards
What is a strategic plan include?
•vision and mission statements
•core values
•goals and objectives
•SWOT analysis
•action plans
How is revenue calculated?
Revenue is calculated by multiplying the average sales price by the number of units sold. Also referred to as gross income.
What is net income?
Revenue minus costs, also known as net earnings.
What are one time investments in physical assets, such as buildings, land, or equipment, and are budgeted separately from operating costs?
Capital costs
What is an indicator of the organizations financial health? (Assets, liabilities and equity)
Balance sheet
Assets= liabilities + equity
Equity= assets-liabilities
What is an income statement, also know as a profit statement?
Indicates an organizations net income or bottom line.
Net income= revenue -expenses
What is the net profit margin?
Net income/ net sales= net profit margin
