Putting a business idea into practice Flashcards
1
Q
what is the definition for aims?
A
aims are goals short for a business and they explain what a business wants to achieve in the long term.
2
Q
what is the definition for a objective?
A
objectives are short term steps a business takes to achieve its aims.
3
Q
what does SMART stand for?
A
specific, measurable, accepted, realistic, time-bound.
4
Q
formula for contribution per unit:
A
selling price - variable costs per unit
5
Q
formula for break even:
A
fixed costs/ contribution per unit
6
Q
margin of safety:
A
level of output - break-even point
7
Q
what is cash flow?
A
cash-flow is the flow of cash in and out of a business
8
Q
what is cash outflow?
A
cash outflow is cash paid out of a business e.g. suppliers, wages, loan repayments.
9
Q
definition for cash:
A
cash is
