Business Case Prep Flashcards
Revenue
Profit
Cost
Revenue = Volume X Price
Profit= Revenue - Cost
Cost= Fix Cost + Variable Cost
Simple and Compound Interest
Simple: calculated on original amount of the loan
Compound: calculate on principal amount and on accumulated interest of pervious periods
Fixed and Variable Cost
Fixed Cost= expenses which remain the same
Variable Cost= expense that change directly and proportionally to changes in business activity level or volume
4 P’s
Product
Promotion
Price
Place
SWOT Analysis
S= Strengths
W=Weakness
O=opportunities
T= Threats
Porters 5 Forces
Understand both the strength of current competitive position and strength of position you are considering
- Competition in Industry
- Potential of New Entry into Industry
- Power of Suppliers
- Power of Customers
- Threat of Substitute Products
Discount Rate
Minimum interest rate set by Federal Revers for lending and other banks
Net vs. Gross Margin
Gross Margin= difference between revenues and cost of good sold
Net Revenue
Gross Revenue
Net Revenue: Earnings after expenses
Gross Revenue: Earnings before expenses
Profatability
Profit/Revenue
Break Even Point
Fixed cost / contribution
Gross Profit
Sales revenue- cost of goods sold
Variance
Actual outcome - budgeted outcome
