Business revision Flashcards
Name 4 objectives of entrepreneurs?
1) survival
2) Profit and income
3) independence and income
4) personal satisfaction
Name 3 qualities that entrepreneurs need?
1) leadership
2) initiative
3) Determination
What is the difference between objectives and qualities?
An objective is a goal that a business is trying to achieve.
A quality is meeting the needs and expectations of customers.
What is the difference between fixed and variable costs?
Fixed costs are costs that do not change with the amount of products sold or produced.
Variable costs are costs that do change with the amount of products sold or produced.
Name four pieces of information that could be found in a business plan?
1) location
2) Products/services
3) Marketing
4) Financial details
Name 3 long term sources of finance?
1) Retained profit
2) Grants
3) Bank loans
Name 3 short term sources of finance?
1) Overdraft
2) Trade credit
3) Factoring
What is cash flow?
the total payments of money flowing in and out of a business.
What is the formula for total costs?
fixed costs + variable costs
What is the formula for Net cash flow?
total income- total payments
What is the formula for revenue ?
units sold *selling price
What is the formula for profit?
total revenue - total costs
What is the formula for closing balance?
net cash flow +opening balance
Money flowing into a business is called?
surplus
Money flowing out the business is called?
shortfall
