Unit 1 Flashcards
1
Q
Percentage Change
A
Percentage Change = ((New Number - Old Number) / Old Number) x 100
2
Q
Profit
A
Profit (or loss) = Total Revenue - Total Costs
3
Q
Total Revenue
A
Total Revenue = Sales x Price of Product
4
Q
Total Costs
A
Total Costs = Fixed Costs + Variable Costs
5
Q
Variable Costs
A
Variable Costs = Variable Cost per Unit x Units produced
6
Q
Average Unit Cost
A
Average Unit Cost = Total Costs / Units Sold (or Produced)
7
Q
Sole Trader Pros
A
- Simple set-up
- No legal requirement to publish accounts
- Do not distribute profits
8
Q
Sole Trader Cons
A
- Unlimited liability
- Fewer sources of finance
9
Q
Partnership Pros
A
- Shared workload
- More finance
10
Q
Partnership Cons
A
- Shared profits
- Unlimited liability
- Shared control
11
Q
Private Limited Companies Pros
A
- Limited liability
- Additional sources of finance
- Control of who shareholders are
12
Q
Private Limited Companies Cons
A
- Legal requirement to publish accounts
- More admin
- No stock exchange finance
- Shared profits
13
Q
Public Limited Companies Pros
A
- Stock exchange finance
- Stable ownership structure
- More prestige
14
Q
Public Limited Companies Cons
A
- Anyone can buy shares
- Risk of split between ownership and control
- Legal requirement to publish accounts
- Short-sighted shareholders
15
Q
Not-for-profit Pros
A
- Do not pay tax
