Business Planning

Question 1

What is a Business Plan?

Answer 1

Written document that describes the businesses Objectives, Strategies, Its market and its financial forecasts

Question 2

Functions of a Business Plan

Answer 2

Securing external funding and Measuring success in a business

Question 3

What are Variable Costs?

Answer 3

Costs that vary directly to the businesses output

Question 4

What is Revenue?

Answer 4

Income that firm receives from selling its goods and services.

Question 5

How to find Revenue?

Answer 5

Units Sold x Price = Revenue

Question 6

How to find total costs?

Answer 6

Fixed Costs + Variable Costs = Total Cost

Question 7

What are fixed costs?

Answer 7

Costs that dont change with business output

Question 8

Problems of Business Plan

Answer 8

Uncertainty
Lack if experience
Change in market

Question 9

What does risk mean

Answer 9

Possibility that something goes wrong

Question 10

What does Uncertainty mean

Answer 10

Lack of inormation about situation which makes outcome unpredictible