Entreprenuer

Question 1

what is an entrepreneur?

Answer 1

A person who sets up a business or businesses, taking on financial risks in the hope of profit:

Question 2

What is initiative?

Answer 2

Making the first move

Question 3

What is revenue?

Answer 3

Any money received by a business

Question 4

What is cost?

Answer 4

any money spent by a business

Question 5

What is the formula of total revenue?

Answer 5

selling price per unit x number of units sold

Question 6

What are fixed costs? (indirect costs or overheads)

Answer 6

costs that must be paid even if nothing is produced e.g. rent, insurance etc…

Question 7

What are variable costs?(direct costs)

Answer 7

costs that are directly related to the number of products made. e.g. material, delivery cost

Question 8

what are the two types of costs a business will have to pay?

Answer 8

start-up costs and running costs although a business will only have to pay the running costs if it is established

Question 9

What are the start-up costs?

Answer 9

premises, market research, machinery and fittings

Question 10

What is the formula of total cost?

Answer 10

total fixed costs+ total variable costs