Business Planning (Busuiness In The Real World) Flashcards
What is a business plan
Its a document setting out what a business does does and what it hopes to achieve in the future
What is business planning?
Its the process of producing a business plan
What is uncertainty?
It occurs where there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict
What is a risk?
A risk is the possibility of something going wrong
What is a revenue?
Its the income that a firm recieves from selling its goods on services. It is also referred to as ‘turnover’. It is measured by the number of units sold multiplied by the price
What are total costs?
They’re fixed costs plus variable costs
What are fixed costs?
They’re those costs that do not change when a business changes its output
What are variable costs?
They’re the costs that vary directly with the business’s level of output
How do you figure out total revenue?
Unit x Product
How do you figure out variable costs?
Total Variable Costs = Cost Per Unit x Total Number of Units
How do you figure out the total costs?
Fixed Costs + Variable Costs = Total Cost.
How do you figure out the profit?
Profit = Revenue - Total Costs
