Break Even
- Created by: Bethany
- Created on: 09-05-15 17:57
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Break Even-
Break-even is a point in a business venture when the profits are equal to the costs.
Benefits-
- Relatively simple concept and the formula can be understood and used by most entrpreneurs
- The information provided can be vital when taking a decision whether to go ahead by most entrepreneurs
- It is widely used to support applications from entrepreneurs for loans
- It can be quickly adapted to allow for many 'what if' situtations to be considered and compared. This reinforces the usefulness of the technique for decision-making.
Drawbacks-
- It assumes that all output produced is sold.
- It oversimplifies business situations
- Many firms sell more…
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