Flashcards
Stakeholder
Anyone who has an interest in a business ( e.g workers, suppliers, goverment)
Goverment taxation
A proportion of income or profit they must be paid to the government.
Margin of Safety
The difference between the break even point and total units sold.
Digital Communication
Communicating with customers using technology ( e.g emails, text message, social media)
Crowd funding
A business gains funding from a large number of people who pay a small amount each.
Market research
Gathering information about the market and customer needs to help make business decisions.
Risk
The possibility that a business could not perform as well as expected (e.g. failure/financial loss)
Break even point
The point where revenue and cost are exactly the same
Break even formula
Fixed cost/ selling price - variable cost
Net profit Margin
Net Profit/ sales revenue x 100
Bar gate stock control graph
A method of displaying data on stock levels, which allows stock control policy to be decided.
Consumer
The person or business that use the good or service produced.
Consumer income
Legal constraints that protect the consumer from unfair business practice.
Franchisor
The seller of a right to operate a franchise
Flow production
Method of production associated with making very large quantities of standard products
