Key terms (old)

Question 1

Financial objectives

Answer 1

targets expressed in money terms, such as making profits, earning income or building wealth.

Question 2

Non-financial objectives

Answer 2

• aim other than financial, why an individual runs their own business. Examples include personal satisfaction, challenge and to help others.
  Entrepreneurs have different objectives when starting a business. For some, financial objectives are key. Non-financial objectives can also be important.

Question 3

Sales revenue

Answer 3

PRICE X QUANTITY

Question 4

Fixed costs

Answer 4

those costs which do not vary as level of output changes. Expenses which businesses pay which do not increase over time no matter what the level of output. These include things such as rent. They are usually only fixed for the short term.

Question 5

Variable costs

Answer 5

Those costs which change as the level of output changes. Examples: Raw materials.

Question 6

Semi-variable cots

Answer 6

is an expense which contains both fixed-cost component and a variable cost component. The fixed cos element shall be part of the cost that needs to be paid irrespective of the level of activity achieved by the entity. On the other hand the variable component of the cost is payable proportionate to the level of activity. Telephone bills ad utility bills.