Buisness Flashcards
What is an entrepreneur
Someone who combines the 4 factors of production and takes on the financial risk or starting a business
What are some qualities of an entrepreneur
Decision making, leadership, innovative, creativity, resilience, hardworking, risk taking, communication, confidence, passion, problem solving, motivated
What is Job production
Each product is made individually
What is batch production
Grounds of product are produced at the same time
What is flow production
Large numbers for identical products on a production line
What is branding
Logo, slogan or colour starched to an individual form or product
Why is having a good brand image important
Loyalty to product so people buy again, Can charge higher prices people associate better quality with a brand name, easier to launch new products if people are familiar with the brand
What are common groups used for target market
Age, gender, lifestyle, income, location, religion
What is break even point
When total cost equals total revenue no profit or loss made
Types of cost
Fixed and variable
What is fixed cost
Cost that doesn’t care with output
Variable
Costs that do vary with output
Formula for contribution
Contribution=selling price-variable costs
Formula for break even point
Break even point= fixed costs:contribution
