Topic 1.3 Putting a business idea into practice Flashcards
What is an aim?
The main goal of the business
What is an objective?
Helps to achieve the aim
What are the two types of aims a business may have?
Financial aim
Non-Financial aim
What are example of financial aim?
survival
sales and sales revenue
profit
market share
What are examples of non-financial aims?
being ethical
personal satisfaction
independence
challenge
What is a example of objective?
There are specific and measurable.
Why do aims and objectives differ between businesses?
Depends on the business:
size/age
volume of competition
Why might business aims and objectives change over time?
legislation
technology
globalisation
What is the importance of cash?
- to pay suppliers
- repay bank loans
- pay wages for employees
- buy raw materials
What can impact business cash flow?
- change in demands
- seasonality
- business expansion
- change in stock
What is short-term sources of finance?
Finances that can be paid quite quickly
What is long-term sources of finance?
Finance that has over a long period of time.
what are examples short-term finance?
Overdrafts
trade credit
What are example of long-term sources of finance?
personal savings, venture capital, loans, retained profit and crowd funding
