Business Planning

Question 1

Business plan

Answer 1

A business plan is a
document setting out
what a business does and
what it hopes to achieve
in the future.

Question 2

Uncirtainty

Answer 2

Uncertainty occurs
where there is a lack
of information about
a situation. This
means the outcome or
consequences are very

Question 3

Risk

Answer 3

A risk is the possibility of

something going wrong.

Question 4

Revenue

Answer 4

Revenue is the income
that a firm receives
from selling its goods
or services.
It is measured by the
number of units sold

Question 5

Total costs

Answer 5

Total costs are fixed

costs plus variable costs.

Question 6

Fixed costs

Answer 6

Fixed costs are those
costs that do not change
when a business changes
its ouput

Question 7

Variable costs

Answer 7

Variable costs are the
costs that vary directly
with the business’s level
of output.