Edexcel GCSE Business (9-1) Key Terms: 1.3 Putting a business idea into practice
- Created by: JackKnight03
- Created on: 21-11-18 18:39
View mindmap
- Variable cost
- A cost which rises as output rises. E.g. Raw materials or packaging.
- Topic 1.3
- Revenue
- The money made from selling a product.
- Profit
- The amount left from revenue after costs have been paid.
- Aims and objectives
- The goals of a business. These may be financial or non-financial.
- Break-even
- The number of products a business must sell so that its total revenue is the same as its total costs. At this point the business will make no profit or loss.
- Cash flow
- The flow of money into and out of a business over a period of time
- Non-financial aim
- Aims and objectives that relate to areas other than finance. E.g. Social objectives, personal satisfaction, challenge and control.
- Net cash flow
- The difference between cash inflows and cash outflows over a period of time.
- Margin of safety
- The amount of products a firm sells over and above the breakeven point.
- Fixed cost
- Costs which do not change with output. E.g. Rent or salaries.
- Financial aim
- Aims and objectives that relate to the money. E.g. Survival, profit, sales, market share.
- Semi variable costs
- Some costs are fixed in the short term but changes when a certain level of output has been reached
- Insolvency
- When a business can no longer afford to pay its debts.
- Revenue
Comments
No comments have yet been made