bussiness Flashcards

1
Q

aim

A

a general goal or ambition to be achieved

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2
Q

objective

A

a specific target that will enable the aim to be achieved

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3
Q

business objects ideally should be SMART

A

Specific
Measurable
Achievable
Realistic
Time-bound

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4
Q

business risks

A

bussiness failure
finiancial loss
lack of security

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5
Q

what might cause a business to fail?

A

drop in sale revenue
cash flow problems
unexpected costs
recession
problems with suppliers
competition

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6
Q

risks that lead to financial

A

risk that a competitor might do better
risk that a product may fail
risk of having insufficent money

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7
Q

lack of security

A

-being an entrepeneur and running a business may not be as secure as working for someone else
-wages, sick pay, pension etc may not be guaranteed
-personal saving may have to be invested in the business
-running a business can be very stressful and could effect an entrepreneurs health

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8
Q

enterprise

A

another word for business

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9
Q

goods

A

physical products that a customer is willing to pay for eg. bread

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10
Q

services

A

non-physical products that a customer is willing to pay for

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11
Q

3 purposes of a business

A
  • to produce goods and services
    -to meet customer needs
    -to add value
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12
Q

added value

A

adding value is the increase in a products value as a result of a business producing that product

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13
Q

added value example

A

50=cost
95p=to make
49.05=added value

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14
Q

the size of the business

A

small businesses will have different aimed objectives to large one

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15
Q

the age of the business

A

new businesses will focus on survival more established business may focus on profit and market store

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16
Q

the purpose of the business

A

privately owned businesss will have different aims and objectives to there owned by the govenment or not for profit organisations

17
Q

revenue

A

the amount of money a business recieves from sales

18
Q

revenue equations

A

selling price times quantity
R=Sp times Q

19
Q

total costs equation

A

fixed costs+variable costs

20
Q

fixed costs

A

costs that do not change, no matter how many products or services a business sells

21
Q

variable costs

A

costs that change depending on how many products or services a business sells

22
Q

profit

A

the difference between revenue and costs

23
Q

profit equation

A

revenue-total costs

24
Q

break even

A

total costs=total revenue

25
break even equation
fixed costs divided by (selling price-variable) Fc divided by (Sp-Vc)
25
break even equation
fixed costs divided by (selling price-variable) Fc divided by (Sp-Vc)
26
credit terms
allow a business to purchase goods from a supplier and to pay for those goods at a later date
27
cash flow
the flow of money into and out of a business
28
forecast
prediction of estimate
29
brackets
minus/negative eg. -100=(100)
30
net cash flow
reciepts-payments
31
income stream
revenue from different groups of customers or customer segments
32
over draft
bank allows account holder to borrow money at short notice, but you have to pay back
33
trade credit
supplier allows a period of time to pay for goods and services. items are brought from suppliers on a buy now pay later basis
34
venture capital
a person or company who buys shares in a business that they hope will grow fast. in the long term they will sell the shares at a profit and often reinvest in other companys
35
share capital
selling part-ownership in the businesses. the share holder receives part of the annual profit in the form of a divide.
36
loan
money borrowed from the bank then repaid with interest over a set amount of time
37
retained profit
a source of finance that does not need to be paid back, but is only available once the business has been trading successfully for a period of time
38
crowd funding
provide valuable marketing benefits and media attention through the use of the internet