The Nature Of Business 0.0 / 5 ? Business StudiesBusinessA2/A-levelAQA Created by: aejacksonCreated on: 16-06-20 15:41 Goods Products that are physically held 1 of 21 Services Opperations that cannot be held 2 of 21 Primary businesses Extract or grow raw materials 3 of 21 Secondary businesses Manufacture goods 4 of 21 Tertiary businesses Provide services 5 of 21 Aims Long term goals 6 of 21 Objectives Specific tasks to complete within an aim 7 of 21 SMART targets Specific, Measurable, Agreed, Realistic, Timely 8 of 21 Profit maximisation Objective to achieve highest profit for shareholders 9 of 21 Survival Objective to continue trading despite environmental challenges 10 of 21 Revenue Income earned from the sale of goods and services 11 of 21 Revenue equation no. of sales * sales price 12 of 21 Costs All expenses a business pays 13 of 21 Total costs equation Fixed costs + variable costs 14 of 21 Fixed costs Costs that dont's change unless the business grows 15 of 21 Variable costs Costs that change 16 of 21 Profit The amount of money made when costs are taken into account 17 of 21 Loss When costs are larger than revenue 18 of 21 Average unit cost Gives an idea of the price to charge for a good or service 19 of 21 Interest The extra amount of money you pay on a loan 20 of 21 Interest formula Interest rate * loan size 21 of 21
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