What Is Enterprise?

Question 1

Why might a business exist?

Answer 1

Profit
Growth
Survival
Cash flow
Social
Ethical

Question 2

What is profit?

Answer 2

To achieve sales revenue that is higher than the total cost

Question 3

What is the equation used to calculate profit?

Answer 3

Profit = sr - Tc
Sr = sales revenue
Tc = total cost

Question 4

What is growth?

Answer 4

To increase in size either by value of sales or volume of sales (or both)
Could be organically ie. Opening newstores, launching new products or externally ie by joining with other business taking them over

Question 5

What is survival?

Answer 5

To continue to exist as a business
Could be primary objectives of start up- businesses -or one experiencing difficult trading conditions

Question 6

. What is cash flow?

Answer 6

To ensure sufficient cash is available to meet day today expenses
Cash flow is the flow of cash into Una out of a business over a period of time.

Question 7

What is social aspect of a business factor?

Answer 7

To behave in a way which benefits society
Could include to create employment, support the local community or improve educational standards

Question 8

What is the ethical factor of a business?

Answer 8

To behave in a way which is considered to be morally correct.
Could include treating stakeholders (including suppliers) and employees in a fair manner or reducing negative impacts on. The environment

Question 9

What does the acronym “smart” stand for in business?

Answer 9

S= specific
M= measurable
A= achievable
R= realistic
T= time