The Role of Business Flashcards
Define Profit
Profit is what remains after all the business expenses have been deducted from sales revenues
What is the Profit formula
Profit=Revenue-Expenses
Define Revenue
Money a business receives as payment for a product
What is the Revenue Formula
Price per unit x quantity sold
Define Expenses
Expenses are all the costs of running the business except the cost of goods sold (COGS)
How do you maximise profits
increase revenue/decrease expenses in order to maximise profits
Define Income
Income is the money received by a person for providing their labour, or from a business as return on investment
Define Salary
Fixed amount of money paid on a regular basis
Define Wage
Unfixed amount of money received for conducting work usually weekly
Who are shareholders and what do they recieve?
Shareholders are people who receive a share of the businesses profits in the form of Dividends.
Define Overtime
Work outside regular hours
What are Fringe Benefits
an extra benefit supplementing an employees money, wages, or salary e.g. healthcare
Define Bonuses
Money added onto a persons wage for positive performance
Define Wealth
Wealth is a stock of previous incomes that have been amassed overtime
Define Choice
Choice is the act of selecting amongst alternatives
What is quality of life?
Quality of life refers to the overall wellbeing of individuals and is a combination of both material and non-material benefits
What is an Entrepreneur?
Someone who starts, operates and assumes the risk of a business venture when making a profit
Define risk
Risk is the possibility of loss.
What is innovation
The creation of a new product, service or process or significantly improving an existing one
