The Nature Of Business

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  • Created by: aejackson
  • Created 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
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Total costs equation
Fixed costs + variable costs
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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

Other cards in this set

Card 2

Front

Opperations that cannot be held

Back

Services

Card 3

Front

Extract or grow raw materials

Back

Preview of the back of card 3

Card 4

Front

Manufacture goods

Back

Preview of the back of card 4

Card 5

Front

Provide services

Back

Preview of the back of card 5
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