mock Flashcards
1
Q
added value
A
difference between the cost to make it and price you sell it at
2
Q
variable cost
A
costs that changes as output changes
3
Q
tariffs
A
tax placed on imported goods by that country’s government
4
Q
service
A
something people pay to be done fro them
5
Q
4 factors that affect business location
A
proximity to: customers, workers, competition and raw materials
6
Q
3 risks of starting a business
A
- loss of money
- business fails
- lack of security
7
Q
3 types of primary research
A
- focus groups
- customer surveys
- questionaire
8
Q
3 types of secondary research
A
- market reports
- government statistics
- internet
9
Q
entrepreneurial characteristic
A
risk-taker
10
Q
3 variable costs for a cafe
A
- coffee
- tea
- biscuits
(the more that sells the more that needs to be bought)
11
Q
fixed costs
A
costs that stay the same each month
12
Q
3 fixed costs of a cafe
A
- coffee machine
- rent
- wages
13
Q
formula for total costs
A
variable costs + fixed costs
14
Q
formula for break even
A
break even = fixed costs / (sales price - variable costs)
15
Q
formula for contribution
A
total sales - total variable costs
